<p></p><p>Political uncertainty following a military coup in 2012 and a struggling cashew nut sector have hampered Guinea-Bissau's economic growth, the International Monetary Fund said on Tuesday. The West African nation was plunged into its latest crisis after soldiers seized power days before the second round of a presidential poll. Elections intended to set it back on a democratic path have been postponed several times since. The United Nations and regional powers have been pressuring the interim government to hold the election now planned for mid-March. "Economic activity has been severely affected by the enduring economic and political consequences of the 2012 coup," the IMF mission to the country said in the statement.</p> <p>"After having contracted by 1.5 percent in 2012, the economy has yet to recover. The mission is estimating a GDP growth rate of 0.3 percent for 2013," it said, adding that given the context of weak domestic demand, inflation has remained subdued in the past two years. Guinea-Bissau, one of the world's poorest countries, has gained notoriety in recent years as a transit point in the smuggling of South American cocaine into Europe. U.N. officials say, however, that smuggling has tailed off this past years. </p><p>Cashew production, most of which is shipped to India, accounts for around 90 percent of Guinea-Bissau export revenues and employs some 80 percent of the 1.6 million people in the former Portuguese colony. The IMF mission said recovery in cashew export volumes was offset by a sharp decline in farm-gate prices.</p> <p>"Growth and fiscal prospects for 2014 hinge on the success of the cashew campaign and external support," the IMF said, adding that "lower fiscal revenue and weak international financial support have led to an accumulation of salary arrears in recent months". The European Union, one of Guinea Bissau's biggest donor, suspended cooperation and a five-year aid programme worth some 110 million euros ($151.26 million) after another military mutiny in 2011. </p><p>The mission is part of a regular review the IMF carries out in several countries to measure economic progress and raise an alert if there are any systemic problems. ($1 = 0.7272 euros </p><p> </p><br><p></p>