## IMF Executive Board Approves US$553.2 Million Extended Arrangement Under the Extended Fund Facility for Gabon

_IMF News, July 28, 2021_

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## Bibliographic details
- Published: July 28, 2021

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### Overview
- The IMF Executive Board approved a 36-month arrangement under the Extended Fund Facility (EFF) for Gabon with access equivalent to US$553.2 million (SDR 388.8 million), or 180 percent of Gabon’s quota.
- The Board’s approval allows for an immediate disbursement equivalent to US$115.25 million for budget support.
- The program aims to support the short-term response to the COVID-19 crisis and lay foundations for green and inclusive private sector-led growth and a strong and sustainable recovery.

### Program objectives and access
- Duration: 36 months (three-year extended arrangement).
- Access: SDR 388.8 million (about US$553.2 million), or 180 percent of Gabon’s quota.
- Immediate financing: disbursement equivalent to US$115.25 million for budget support.
- Program supports implementation of the authorities’ 2021–23 Economic Recovery Strategy.

### Macroeconomic outlook and risks
- The COVID-19 pandemic and the fall in oil prices severely hit the Gabonese economy, deteriorating fiscal and external balances, and increasing unemployment and poverty.
- The economy is showing incipient signs of recovery, but the outlook remains challenging and contingent on:
  - The pandemic path;
  - Effective rollout of the vaccines;
  - Implementation of structural reforms.
- Downside risk examples:
  - A slow rollout of vaccines or further infection waves could delay the recovery to 2022 or beyond.

### Policy priorities and recommended reforms
- Near-term: Continue fiscal support to save lives and livelihoods and support the recovery.
- Medium-term: Pace fiscal consolidation with the recovery; once recovery is on a solid footing, pursue more ambitious fiscal consolidation to reduce public debt levels and vulnerabilities while securing high and inclusive growth.
- Key reform areas:
  - Improve governance and transparency to enhance domestic revenue (including from the oil and mining sectors) and spending efficiency.
  - Strengthen anti-corruption framework.
  - Enhance the banking sector and financial inclusion.
  - Improve the business environment to promote private investment and inclusive growth.
- Regional coordination: Program is supported by CEMAC regional policy implementation in foreign exchange regulations and monetary policy framework to increase regional net foreign assets, which are critical to the program’s success.

### Selected economic indicators and projections
- Population (2017, UN est.): 2.01 million
- Per capita GDP (2017): US$ 7,490
- Quota: SDR 216.0 million
- Literacy rate (2012): 82.3 percent
- Main products and exports: Crude petroleum; Manganese ore.
- Poverty rate (2017): 32.4 percent
- Key export markets: China; European Union, Australia

- Macroeconomic indicators (selected years, as published)
  - Output (percent) — Real GDP:
    - 2019: 3.9
    - 2020 (Est.): -1.8
    - 2021 (Proj.): 1.5
    - 2022 (Proj.): 3.2
  - Output (percent) — Non-oil GDP:
    - 2019: 3.3
    - 2020 (Est.): -1.7
    - 2021 (Proj.): 2.7
    - 2022 (Proj.): 3.0
  - Prices (percent) — Inflation (End of period):
    - 2019: 1.0
    - 2020 (Est.): 1.6
    - 2021 (Proj.): 2.0
  - Central Government Finances (percent of GDP):
    - Revenue:
      - 2019: 19.5
      - 2020 (Est.): 17.6
      - 2021 (Proj.): 17.1
      - 2022 (Proj.): 18.4
      - 2023 (Proj.): 19.2
    - Expenditure and net lending:
      - 2019: 18.2
      - 2020 (Est.): 19.8
      - 2021 (Proj.): 20.4
      - 2022 (Proj.): 18.7
      - 2023 (Proj.): 18.8
    - Fiscal Balance (cash basis):
      - 2019: 0.8
      - 2020 (Est.): -2.5
      - 2021 (Proj.): -3.5
      - 2022 (Proj.): -0.3
      - 2023 (Proj.): 0.4
    - Total Public Debt:
      - 2019: 59.8
      - 2020 (Est.): 77.4
      - 2021 (Proj.): 74.7
      - 2022 (Proj.): 72.2
      - 2023 (Proj.): 70.1
  - Central Government Finances (percent of Non-oil GDP):
    - Revenue and grants:
      - 2019: 29.0
      - 2020 (Est.): 23.4
      - 2021 (Proj.): 23.3
      - 2022 (Proj.): 24.9
      - 2023 (Proj.): 25.5
    - Oil:
      - 2019: 11.2
      - 2020 (Est.): 9.0
      - 2021 (Proj.): 6.8
      - 2022 (Proj.): 7.9
      - 2023 (Proj.): 8.0
    - Non-oil:
      - 2019: 17.8
      - 2020 (Est.): 14.4
      - 2021 (Proj.): 15.7
      - 2022 (Proj.): 17.0
    - o/w Current:
      - 2019: 27.0
      - 2020 (Est.): 26.3
      - 2021 (Proj.): 27.7
      - 2022 (Proj.): 25.4
      - 2023 (Proj.): 25.0
    - o/w Capital:
      - 2019: 4.2
      - 2020 (Est.): 3.6
      - 2021 (Proj.): 4.8
      - 2022 (Proj.): 4.9
      - 2023 (Proj.): 4.6
    - Non-oil primary balance:
      - 2019: -5.8
      - 2020 (Est.): -7.4
      - 2021 (Proj.): -7.1
      - 2022 (Proj.): -4.9
      - 2023 (Proj.): -3.4
    - Basic non-oil primary balance 1/:
      - 2019: -4.2
      - 2020 (Est.): -6.1
      - 2021 (Proj.): -3.0
      - 2022 (Proj.): -0.2
  - Money and Credit:
    - Broad Money (percent change):
      - 2019: 1.2
      - 2020 (Est.): 7.1
      - 2021 (Proj.): 11.7
      - 2022 (Proj.): 12.4
    - Credit to the private sector (percent change):
      - 2019: 2.2
      - 2020 (Est.): 5.4
      - 2021 (Proj.): 6.2
      - 2022 (Proj.): 7.0
  - Balance of Payments:
    - Current account (percent of GDP):
      - 2019: -0.9
      - 2020 (Est.): -6.0
      - 2021 (Proj.): -4.8
      - 2022 (Proj.): -2.9
    - FDI (percent of non-oil GDP):
      - 2019: 7.3
      - 2020 (Est.): 7.8
    - External Debt (percent of GDP):
      - 2019: 39.2
      - 2020 (Est.): 46.0
      - 2021 (Proj.): 44.4
      - 2022 (Proj.): 45.3

*IMF Press Release No. 21/233, July 28, 2021.*

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## References

- [https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)
- [The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2021/07/28/pr21223-gabon-imf-executive-board-approves-us-553-2-million-extended-arrangement-under-eff_