IMF forecasts 3% economic growth in Gabon

The IMF Executive Board wrapped up its 2024 Article IV consultation with Gabon, noting the country’s resilient post-pandemic recovery despite recent challenges.

According to the IMF statement, economic growth in the country is expected to rebound to approximately 3 per cent this year, supported by receding inflation and favourable oil prices. However, fiscal imbalances have widened notably, leading to increased arrears and pushing public debt above the regional ceiling.

The IMF also noted that Gabon faces hurdles due to the gradual decline in oil wealth and insufficient diversification away from oil-dependent sectors.

Moreover, long-term growth is projected to slow to around 2⅔ per cent, posing challenges to income per capita growth and current account surpluses.

The IMF Board further highlighted the necessity for Gabon to address fiscal imbalances urgently, emphasising the importance of fiscal consolidation while ensuring adequate funding for social and developmental needs.

Furthermore, improving spending efficiency, enhancing revenue generation, and adopting a robust fiscal framework were recommended to achieve fiscal sustainability.

Governance and transparency in fiscal management were stressed, along with the need for economic diversification to improve living standards. Strengthening financial sector stability, addressing climate vulnerabilities, and enhancing economic statistics were also emphasized.

The Board encouraged Gabon to continue its collaboration with the IMF to support reform efforts, with the next Article IV consultation expected to follow the standard 12-month cycle.