Equatorial Guinea’s economy grew by an estimated 0.9% in 2024 compared to 5.1% in 2023 – says World Bank – The Sierra Leone Telegraph

Sierra Leone Telegraph: 23 July 2025:

The World Bank issued today the 2025 Equatorial Guinea Economic Update which analyses the country’s recent economic developments and outlook and highlights the importance of a comprehensive accounting of wealth and the role of human, physical, and natural capital in shaping sustainable growth and development, with a focus on the value of forest ecosystem services.

Equatorial Guinea’s economy grew by an estimated 0.9% in 2024 (compared to 5.1% in 2023), with higher contributions from the industrial and service sectors. Inflation increased from 2.4% to 3.4% between 2023 and 2024.

Soaring food prices and sluggish growth along with limited employment opportunities contributed to rising poverty, with an estimated 57% of the population living below the poverty line ($6.85 in 2017 Purchasing Power Parity) in 2024. Fiscal and external balances deteriorated in 2024, mainly due to declining hydrocarbon export earnings, while debt-to-GDP ratio declined thanks to the authorities’ efforts to clear arrears.

This year’s report shows that Equatorial Guinea’s produced capital increased 100-fold between 1995 and 2020, bolstered by public investments following major oil and gas discoveries. However, capital accumulation has slowed since the end of the oil boom.

While education and health outcomes have improved in Equatorial Guinea in recent years, additional efforts are needed to bring the country’s human capital outcomes in line with countries of a similar income level.

Despite a 30% decrease in non-renewable natural capital from 2005 to 2020, the hydrocarbon sector continues to dominate the economy, accounting for over 80% of revenues and nearly 46% of GDP in 2024.

“Equatorial Guinea has achieved notable advancements over the past few decades. Leveraging its wealth in natural resources, especially oil, the country has experienced substantial economic growth, considerable infrastructure development, and improvements in certain social indicators,” said Juan Diego Alonso, the new World Bank Group Resident Representative for Equatorial Guinea. “However, given the decline in the hydrocarbon sector, it is imperative to implement comprehensive reforms to diversify the economy, utilizing the nation’s rich assets including the forestry sector.”

The forest cover in Equatorial Guinea decreased from an estimated 97% in 2000 to 94.5% in 2020. While forest provisioning services—such as wood, fuelwood, and wild resources—have increased and remain vital for rural livelihoods and economic activity, critical regulating services like carbon sequestration and sediment control are under growing threat due to forest loss and degradation. It is critical to maximize forest ecosystem services by adopting a holistic strategy that integrates land-use planning, sustainable agriculture, access to clean energy, and sustainable tourism.

The report emphasizes the need for increased international support for Congo Basin countries, including Equatorial Guinea, to ensure adequate compensation for their forest preservation efforts and support the transformation of carbon retention services into tangible benefits.

“Equatorial Guinea can boost growth and job creation by leveraging forest ecosystem services in wood processing, ecotourism, and agriculture sectors. However, this will require continued investments and reforms to create an enabling environment,” said Djeneba Doumbia, Country Economist for Equatorial Guinea and lead author of the report.

Source: World Bank

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