The Systematic Country Diagnostic Update (the Update) revisits Guinea-Bissau's development challenges and the prioritization of policy actions to make sustained progress towards decreasing fragility, reducing poverty, and achieving inclusive economic growth. Leveraging new data and analytics, the Update takes stock of recent developments and reviews the findings of the Systematic Country Diagnostic (SCD), published by the World Bank in 2016. Because major constraints to development remain unchanged, the new version of the SCD is being prepared as an update. The Update proposes five High Level Outcomes (HLOs) that link binding development challenges, priority policy actions, and the World Bank twin goals of ending poverty and increasing shared prosperity. The Update employs a bottom-up approach to revisit Guinea-Bissau's development prospects, considering the current global context. The analytical approach consists of four steps and is informed by the current global context (chapter 2): First, it appraises the progress (or lack thereof) in the development challenges that Guinea-Bissau's faces in the areas of governance and fragility, poverty and inclusion, economic growth, and the sustainability of the development process (chapter 3). Second, based on this comprehensive review, four binding constraint areas are identified (chapter 4). Third, based on recent analytical work, internal and external consultations, and a predefined prioritization methodology, the list of Priority Policy Areas (PPAs) is updated (chapter 5). Fourth, to link the PPAs with the World Bank's twin goals, five HLOs are proposed.