Gabon’s growth slows, World Bank urges fiscal reforms

Gabon’s economy experienced a growth rate of only 2.4 per cent in 2023, impacted by transport disruptions affecting wood and manganese production, according to the World Bank’s Gabon Economic Update 2024.

In the wake of a contested election and subsequent coup in August, Gabon’s new leadership aims to strengthen institutions and improve public finance transparency. However, the report notes a slight deterioration in the fiscal position, as increased public spending to address social needs and infrastructure gaps has outpaced slower revenue growth, resulting in rising public debt.

The forestry sector plays a crucial role in Gabon’s economy, contributing 3.2 per cent of GDP and 6 per cent of exports in 2023. It generated 41.9 billion CFA francs for the national budget, nearly quadrupling its contribution since 2016.

Ongoing reforms, including a revised forestry code and the implementation of a digital wood traceability system, aim to combat illegal logging and support sustainable practices.

“Fiscal policies for forestry could be part of a broader strategy to align economic and environmental goals, raising more revenues for the state while promoting jobs and higher value-added in a sustainable timber industry” stated co-author Erick Tjong. The report also calls for international support to help Gabon maintain its vital role in global climate services while fostering local economic development.

Attribution: World Bank

Subediting: M. S. Salama