Government Expenditure: Guinea-Bissau

Analysis# Guinea-Bissau Government Expenditure Guinea-Bissau's government expenditure stands at 19.16% of GDP in 2026, representing a significant decline from its all-time peak of 25.034% in 2020. Since 2004, overall spending has contracted by 16.6%, though current levels remain well above the historical low of 12.416% recorded in 2013. The country's expenditure profile reveals substantial volatility over the past two decades, with substantial year-to-year fluctuations marking the fiscal trajectory. A dramatic spike occurred in 2020-2021, when expenditure reached consecutive highs near 25%, likely reflecting pandemic-related spending pressures. Since that peak, Guinea-Bissau has pursued fiscal consolidation, reducing outlays by roughly 5 percentage points over four years. The 2026 projection of 19.16% suggests stabilization around pre-pandemic levels, indicating the government's commitment to moderating expenditure relative to economic output going forward.