Mother Earth Travel > Country Index > Gabon > Map Economy |
| Economy - overview: Gabon enjoys a per capita income four times
that of most nations of sub-Saharan Africa. This has supported a sharp
decline in extreme poverty; yet because of high income inequality a large
proportion of the population remains poor. Gabon depended on timber and
manganese until oil was discovered offshore in the early 1970s. The oil
sector now accounts for 50% of GDP. Gabon continues to face fluctuating
prices for its oil, timber, manganese, and uranium exports. Despite the
abundance of natural wealth, the economy is hobbled by poor fiscal
management. In 1992, the fiscal deficit widened to 2.4% of GDP, and Gabon
failed to settle arrears on its bilateral debt, leading to a cancellation
of rescheduling agreements with official and private creditors.
Devaluation of its Francophone currency by 50% on 12 January 1994 sparked
a one-time inflationary surge, to 35%; the rate dropped to 6% in 1996. The
IMF provided a one-year standby arrangement in 1994-95, a three-year
Enhanced Financing Facility (EFF) at near commercial rates beginning in
late 1995, and stand-by credit of $119 million in October 2000. Those
agreements mandate progress in privatization and fiscal discipline. France
provided additional financial support in January 1997 after Gabon had met
IMF targets for mid-1996. In 1997, an IMF mission to Gabon criticized the
government for overspending on off-budget items, overborrowing from the
central bank, and slipping on its schedule for privatization and
administrative reform. The rebound of oil prices in 1999-2000 helped
growth, but drops in production hampered Gabon from fully realizing
potential gains. An expected decline in oil output may lead to contraction
in GDP in 2001-02. GDP: purchasing power parity - $7.7 billion
(2000 est.) SOURCE: The World Factbook |
Mother Earth Travel > Country Index > Gabon > Map Economy