Republic of Equatorial Guinea: 2022 Article IV Consultation—Press Release; Staff Report; And Statement By The Executive Director for Republic of Equatorial Guinea
IMF Staff Country Reports, August 3, 2022
Source details
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- Republic of Equatorial Guinea: 2022 Article IV Consultation—Press Release; Staff Report; And Statement By The Executive Director for Republic of Equatorial Guinea
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Bibliographic details
- Authors: The Executive Director
- Published: August 3, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400216718.002
Summary and context
- The COVID-19 pandemic in 2020-21, and Bata explosions in 2021, struck oil-exporter Equatorial Guinea at a time when its economic vulnerabilities had already been aggravated by a prolonged period of depressed hydrocarbon prices, and seven consecutive years of decline in real GDP.
- The economy is slowly emerging from the ravages of the 2020-21 shocks, buoyed by higher international oil prices.
- Substantial challenges remain:
- Short-term: surging food prices and banking sector vulnerabilities cloud the short term.
- Medium-term: declining hydrocarbon production—and the implied decline in external reserves—loom over the medium term, especially in light of lagging governance and diversification reform implementation.
Major findings and risks
- Pandemic and disaster impacts:
- COVID-19 in 2020-21 and the Bata explosions in 2021 compounded pre-existing vulnerabilities from prolonged low hydrocarbon prices.
- Economic performance:
- Seven consecutive years of decline in real GDP preceded the 2020-21 shocks.
- Recent recovery is supported by higher international oil prices.
- Short-term risks:
- Surging food prices.
- Banking sector vulnerabilities.
- Medium-term risks:
- Declining hydrocarbon production.
- Declining external reserves implied by lower hydrocarbon output.
- Lagging implementation of governance and diversification reforms exacerbates medium-term vulnerability.
Subject coverage and keywords
- Subjects: Economic and financial statistics, Expenditure, External debt, Financial institutions, International organization, Monetary policy, Prices, Revenue administration
- Keywords: Africa, Arrears, asset declaration, audit report, Commercial banks, Energy subsidies, Equatorial Guinea's NFA, External sector statistics, Global, gradual ease, headline inflation, Oil prices
Content in this bundle
- 1gnqea2022001