The International Monetary Fund predicts that the economy of Guinea-Bissau will grow by 5.5 percent this year and that the annual rate of inflation will be about 2 percent.

The IMF issued a written statement saying it bases its prediction on the increase in the incomes of rural households due the increase in the price of cashew, which has never been higher.

But the fund says Guinea-Bissau should reduce its dependence on cashew exports and make its economy more diverse.

“This will require promoting an attractive business environment with stable and transparent regulation in support of healthy competition,” the IMF statement advises.