{
  "title": "Gabon: Selected Issues",
  "publication": "IMF Staff Country Reports, May 31, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2024/05/31/gabon-selected-issues-549686",
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  "summary": "This Selected Issues paper investigates the determinants of sovereign spreads in 50 Emerging Market and Developing Economies, using a fixed effects panel model and leverages the results to draw lessons for improving funding costs in Gabon.",
  "sections": [
    {
      "heading": "Major findings on sovereign spreads",
      "content": "- Analysis covers determinants of sovereign spreads in 50 Emerging Market and Developing Economies using a fixed effects panel model.\n- Main factors that increase Gabon’s spreads:\n  - weak governance,\n  - high public debt,\n  - weak economic performance,\n  - a poor government payment record of accomplishment,\n  - social vulnerabilities."
    },
    {
      "heading": "Quantified impacts and scenarios",
      "content": "- Bringing indicators for government effectiveness, regulatory quality, and the fiscal position to the median for sovereigns rated Banks Board Bureau by Fitch, and clearing external government arrears, could:\n  - help reduce spreads by at least 500 bp,\n  - save at least 0.4 percent of gross domestic product in annual interest costs.\n- Investment grade bond spreads are approximately 200 basis points, which is around 400 basis points below Gabon’s February 2024 level."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Strengthen governance indicators: government effectiveness and regulatory quality.\n- Improve fiscal position toward medians for comparable sovereign ratings.\n- Clear external government arrears to improve payment record of accomplishment.\n- Strengthen growth drivers and economic diversification to improve long-term economic performance and funding costs."
    },
    {
      "heading": "Additional contextual points",
      "content": "- The paper leverages empirical results from the panel model to draw lessons specifically aimed at improving Gabon’s funding costs.\n- Emphasis on both near-term fiscal/governance measures and longer-term structural reforms (growth drivers, diversification).\n\nSource: Gabon: Selected Issues, May 31, 2024 (IMF Staff Country Reports).\n\n---\n\n Content in this bundle\n\n- Gabon: Selected Issues; IMF Country Report No. 24/145; May 10, 2024\n  - Gabon: Selected Issues; IMF Country Report No. 24/145; May 10, 2024 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Gabon: Selected Issues; IMF Country Report No. 24/145; May 10, 2024 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: May 31, 2024",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400277900.002",
    "Analysis covers determinants of sovereign spreads in 50 Emerging Market and Developing Economies using a fixed effects panel model.",
    "Main factors that increase Gabon’s spreads:",
    "Bringing indicators for government effectiveness, regulatory quality, and the fiscal position to the median for sovereigns rated Banks Board Bureau by Fitch, and clearing external government arrears, could:",
    "Investment grade bond spreads are approximately 200 basis points, which is around 400 basis points below Gabon’s February 2024 level.",
    "Strengthen governance indicators: government effectiveness and regulatory quality.",
    "Improve fiscal position toward medians for comparable sovereign ratings.",
    "Clear external government arrears to improve payment record of accomplishment.",
    "Strengthen growth drivers and economic diversification to improve long-term economic performance and funding costs.",
    "The paper leverages empirical results from the panel model to draw lessons specifically aimed at improving Gabon’s funding costs.",
    "Emphasis on both near-term fiscal/governance measures and longer-term structural reforms (growth drivers, diversification).",
    "**Gabon: Selected Issues; IMF Country Report No. 24/145; May 10, 2024**"
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