{
  "title": "IMF Survey : Gabon Seeks to Diversify its Economy as Oil Revenues Decline",
  "publication": "IMF News, March 21, 2016",
  "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/28/04/53/socar032116a",
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  "summary": "Hit hard by the recent oil price decline, Gabon can build resilience and revive growth by continuing to diversify its economy, says the IMF.",
  "publishDate": "2016-03-21",
  "sections": [
    {
      "heading": "Macroeconomic shock and outlook",
      "content": "- Oil prices have declined by about 75 percent over the past 18 months; they used to be a little over $100 per barrel and now they’re about $30 per barrel.\n- Growth declined to about 4 percent in 2015.\n- Growth is expected to decline further to just over 3 percent—about 3.2 percent—in 2016.\n- Between 2010 and 2014, the growth rate was around 6 percent.\n- Oil in 2014 contributed to about 45 percent of government revenue and about 85 percent of exports."
    },
    {
      "heading": "Immediate fiscal and revenue responses (short run)",
      "content": "- Raise additional revenue outside of the oil sector, notably by reducing the extent of tax exemptions.\n- Better control the growth of the wage bill to contain spending.\n- Reprioritize capital spending to focus on projects with the highest benefits or highest economic returns so the government can live within its means."
    },
    {
      "heading": "Social protection and distributional considerations",
      "content": "- Adjust spending in line with available revenue while protecting the most vulnerable.\n- Strengthen the social safety net by:\n  - Developing the agricultural sector (reduce food imports; produce food more cheaply locally).\n  - Improving rural access roads and availability of agricultural inputs.\n  - Introducing or expanding cash transfers for the most vulnerable segments of the population, particularly in urban areas."
    },
    {
      "heading": "Structural diversification and medium- to long-term reforms",
      "content": "- Principal strategic objective: diversify the economy to reduce dependence on oil and increase resilience to external shocks.\n- Authorities’ strategic plan: PSGE (Plan Stratégique Gabon Emergent).\n- Key areas of focus under PSGE:\n  - Development of infrastructure, especially transport (roads, ports, railways) and improving availability of electricity.\n  - Increase value added through Special Economic Zone (Nkok near Libreville) with emphasis on industries such as wood processing.\n  - Improve business climate nationwide to promote investment.\n  - Invest in human capital—particularly vocational training—to address shortage of qualified manpower and support diversification into new economic activities."
    },
    {
      "heading": "Key policy priorities (three stated priorities)",
      "content": "- Boost the growth rate through implementation of structural reforms to elevate long-run growth.\n- Diversify the economy to make it more resilient to external shocks (for example, oil price declines).\n- Safeguard long-run fiscal sustainability to avoid significant increases in public debt that would jeopardize strategic objectives in both the short run and the long run.\n\nIMF Survey interview with Montfort Mlachila; March 21, 2016.\n\n---\n\n\n References\n\n- https://www.imf.org/en/News/country-focus\n- PRESS CENTER\n- IMF Country Focus\n- IMF Survey Interview\n- Press release\n- Read the report\n- Selected issues\n- Gabon and the IMF\n- Sayeh blog: Competitiveness in SSA: Time to move ahead\n- Weaker growth\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/28/04/53/socar032116a"
    }
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    "Published: March 21, 2016",
    "Oil prices have declined by about 75 percent over the past 18 months; they used to be a little over $100 per barrel and now they’re about $30 per barrel.",
    "Growth declined to about 4 percent in 2015.",
    "Growth is expected to decline further to just over 3 percent—about 3.2 percent—in 2016.",
    "Between 2010 and 2014, the growth rate was around 6 percent.",
    "Oil in 2014 contributed to about 45 percent of government revenue and about 85 percent of exports.",
    "Raise additional revenue outside of the oil sector, notably by reducing the extent of tax exemptions.",
    "Better control the growth of the wage bill to contain spending.",
    "Reprioritize capital spending to focus on projects with the highest benefits or highest economic returns so the government can live within its means.",
    "Adjust spending in line with available revenue while protecting the most vulnerable.",
    "Strengthen the social safety net by:",
    "Principal strategic objective: diversify the economy to reduce dependence on oil and increase resilience to external shocks.",
    "Authorities’ strategic plan: PSGE (Plan Stratégique Gabon Emergent).",
    "Key areas of focus under PSGE:",
    "Boost the growth rate through implementation of structural reforms to elevate long-run growth.",
    "Diversify the economy to make it more resilient to external shocks (for example, oil price declines).",
    "Safeguard long-run fiscal sustainability to avoid significant increases in public debt that would jeopardize strategic objectives in both the short run and the long run.",
    "[https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[IMF Country Focus](https://www.imf.org/en/news/country-focus)",
    "[IMF Survey Interview](https://www.imf.org/en/news/search)",
    "[Press release](http://www.imf.org/external/np/sec/pr/2016/pr1681.htm)",
    "[Read the report](http://www.imf.org/external/pubs/cat/longres.aspx?sk=43802.0)",
    "[Selected issues](http://www.imf.org/external/pubs/cat/longres.aspx?sk=43803.0)",
    "[Gabon and the IMF](http://www.imf.org/external/country/gab/index.htm)",
    "[Sayeh blog: Competitiveness in SSA: Time to move ahead](https://blog-imfdirect.imf.org/2016/01/28/competitiveness-in-sub-saharan-africa-time-to-move-ahead/)",
    "[Weaker growth](http://www.imf.org/external/pubs/ft/survey/so/2015/car102715a.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
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