Gabon Sees 6 Percent GDP Growth Despite Fiscal Pressure

Gabon Sees 6 Percent GDP Growth Despite Fiscal Pressure

From Ventures Africa

In its usual periodic economic reviews of African countries, the International Monetary Fund (IMF) has profiled the economy of Gabon, giving a perspective on the country’s efforts to boost economic growth.

According to the consultation report, Gabon’s growth performance has recently been strong, but fiscal pressures have also increased significantly.

As the government continues to implement its strategic plan, Stratégique Gabon Emergent (PSGE), geared at promoting economic diversification and inclusive growth, real GDP growth has averaged about 6 percent in the last four years driven by a substantial scaling-up of capital spending.

The external current account has been in surplus, while inflation has remained at a low single digit. Despite sustained high oil prices until recently, the coastal country’s fiscal situation has come under pressures and arrears have accumulated partly as a result of the upgrade in public investment.

Like many other African states, its medium-term growth outlook has weakened as a result of the sudden decline in oil prices, however, this is expected to remain relatively strong as economic growth will likely be driven by a number of ongoing projects in the agro-allied, mining, and wood processing industries.

Read more at Ventures Africa