Guinea-Bissau Interest Rate Spread
Interest rate spread (lending rate minus deposit rate) FR.INR.LNDP
Guinea-Bissau's interest rate spread was -1.35% in 2017, ranked 2nd globally. This represents a 17.2% increase from 2016. Data from World Bank, covering 2005–2017.
Overview
Guinea-Bissau's interest rate spread stood at -1.35% in 2017, a rise of +0.28pp from 2016. Guinea-Bissau ranked 2nd globally.
Guinea‑Bissau’s interest‑rate spread fell from a high of 2.76 % in 2005 to a historic trough of –3.60 % in 2009, before narrowing to –1.35 % in 2017, a level that ties it with Côte d’Ivoire, Mali, Niger and Senegal for the second‑lowest spread worldwide. The 2005 peak reflected a period of elevated borrowing costs relative to deposit rates, while the 2009 trough coincided with the global financial crisis and a sharp contraction in lending margins. Over the 13‑year coverage, the spread has consistently trended downward, indicating persistent pressure on banks’ profitability and limited room for monetary policy easing. The negative spread suggests that deposit rates have exceeded lending rates, a situation that can discourage credit growth and hamper investment. If macro‑financial stability improves and the banking sector regains confidence, the spread may begin to widen modestly, restoring a more conventional gap between loan and deposit rates.
Data & projection
| Year | Interest Rate Spread | YoY change | Rank |
|---|---|---|---|
| 2017 | -1.35% | +0.28pp | #2 |
| 2016 | -1.63% | +0.21pp | #4 |
| 2015 | -1.84% | +0.08pp | #5 |
| 2014 | -1.92% | +0.45pp | #5 |
| 2013 | -2.37% | +0.59pp | #5 |
| 2012 | -2.95% | +0.29pp | #5 |
| 2011 | -3.24% | +0.03pp | #4 |
| 2010 | -3.27% | +0.33pp | #5 |
| 2009 | -3.60% | −0.46pp | #5 |
| 2008 | -3.14% | −0.08pp | #5 |
| 2007 | -3.06% | +0.02pp | #5 |
| 2006 | -3.09% | −5.84pp | #5 |
| 2005 | 2.76% | – | #18 |
Detected Pattern
Analysis
Guinea-Bissau matched the Fiscal Dominance Trap pattern in 2008. Historically, 72% of countries showing this pattern (278 out of 386) saw interest rate spread improve within 24 months. View full analysis →
Frequently Asked Questions
Guinea-Bissau's interest rate spread was -1.35% in 2017. Ranked 2nd globally. This represents a 17.2% increase from the previous year.
Guinea-Bissau's interest rate spread peaked at 2.76% in 2005.
The lowest interest rate spread in Guinea-Bissau was -3.60% in 2009.
Guinea-Bissau ranks 2nd globally in interest rate spread as of 2017.
The World Bank indicator code is FR.INR.LNDP. Data sourced from World Bank.
The interest rate spread of Guinea-Bissau in 2017 was -1.35%. This ranks 2nd in the world.
Cite this page
@misc{historysaid_guinea-bissau_interest-rate-spread,
title = {Guinea-Bissau Interest Rate Spread},
url = {https://historysaid.com/guinea-bissau/interest-rate-spread/},
publisher = {HistorySaid},
year = {2026}
}