The economy of Guinea-Bissau is controlled by subsistence agriculture. Food crops include rice,plantains, cassava, and maize. The principal export crops include cashew nuts, which account for more than half of export earnings; peanuts, which are grown in the interior; palm products, raised on the islands and in the coastal region; and cotton. The fishing industry has grown rapidly and is a major source of export earnings. Cattle breeding is valuable in the interior. Manufacturing is mainly limited to the processing of raw materials and the production of basic consumer goods. The nation has 4,400 km of roads. The unit of currency is the CFA franc, consisting of 100 centimes.

The economy is largely agricultural, with good prospects for forestry and fishery development. Rice is the main staple, and export crops include peanuts, cashews, palm products, timber, and seafood. Indigenous hardwoods are the predominant forestry export. Fishing potential is around at nearly 250,000 metric tons per year. Most of the fishing is done by foreign vessels under license.Restoration of prewar levels of production has been hampered by government neglect of rural development and by trade policies that primarily benefit urban areas. Less than half the arable land is in use. Urban areas in particular have suffered food shortages, and scarce foreign exchange is used to import food.

One of the 20 poorest countries in the world, Guinea-Bissau depends mainly on farming and fishing. Cashew crops have increased remarkably in recent years, and the nation now ranks sixth in cashew production. Guinea-Bissau exports fish and seafood along with small amounts of peanuts, palm kernels, and timber. Rice is the major crop and staple food. intermittent fighting between Senegalese-backed government troops and a military junta destroyed much of the nation's infrastructure and caused widespread damage to the economy in 1998; the civil war led to a 28% drop in GDP that year, with partial recovery in 1999-2000.The tightening of monetary policy and the development of the private area had also begun to reinvigorate the economy. Because of high costs, the development of petroleum, phosphate, and other mineral resources is not a near-term prospect. unexploited offshore oil reserves could offer much-needed revenue in the long run.