Gabon: Gabon Economy Profile

 The economy expanded by 5.1% in 2014, slightly less than the previous time(5.6%) and below projections of 6.7% made at the start of the year. Prospects remain good, with increase projections of 4.6% in 2015 and 4.7% in 2016. However, unpredictable oil prices and output make these uncertain, particularly with unrest expected in the run-up to presidential elections in 2016.

The result of lower oil prices and output on public finances once again underlined the country’s vulnerability to external shocks. The drop in oil revenue meant the budget had to be cut by 11.4%. These cuts have hit small and medium-sized enterprises through delayed payments from their major customer, the government. Inflation was higher in 2014 (about 6%), twice the limit set by the Central African Economic and Monetary Community (CEMAC).

Repeated strikes by civil servants and by the major oil and gas sector trade union caused disruption in 2014. The government presented a new human investment strategy at the beginning of the year in an effort to relieve social pressures. Despite being an upper-middle-gain country, Gabon still has completely low social indicators and will not achieve most of the 2015 Millennium Development Goals.

The government’s ambitious spatial development scheme, “Strategic Plan Emerging Gabon” (Plan stratégique Gabon émergent, PSGE), is based on setting up ten “clusters” of economic activity around the country to make best use of national potential as a way of diversifying the economy, and will require major investment in infrastructure and social services.

The economy grew 5.1% in 2014 but lower oil prices will reduce tax revenue in 2015.
Treasury problems have led to a major build-up of domestic payment arrears since 2013 that is presently being resolved, while unprecedented strikes have affected the civil service and the oil and gas sector.
The country’s strategic plan for an emerging Gabon (PSGE) aims for an economic relaunch by 2025 by creating ten development centres to use the comparative advantages of the various national spaces.