## Gabon: Selected Issues

_IMF Staff Country Reports, May 31, 2024_

## Source details

**Canonical URL:** [Gabon: Selected Issues](https://www.imf.org/en/publications/cr/issues/2024/05/31/gabon-selected-issues-549686)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/05/31/gabon-selected-issues-549686/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/05/31/gabon-selected-issues-549686/index.json)
- [Bundle manifest](/en/publications/cr/issues/2024/05/31/gabon-selected-issues-549686/bundle-manifest.json)

## Bibliographic details
- Published: May 31, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400277900.002

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### Major findings on sovereign spreads
- 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:
  - weak governance,
  - high public debt,
  - weak economic performance,
  - a poor government payment record of accomplishment,
  - social vulnerabilities.

### Quantified impacts and scenarios
- 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:
  - help reduce spreads by at least 500 bp,
  - save at least 0.4 percent of gross domestic product in annual interest costs.
- Investment grade bond spreads are approximately 200 basis points, which is around 400 basis points below Gabon’s February 2024 level.

### Policy implications and recommendations
- 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.

### Additional contextual points
- 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).

*Source: Gabon: Selected Issues, May 31, 2024 (IMF Staff Country Reports).*

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## Content in this bundle

- **Gabon: Selected Issues; IMF Country Report No. 24/145; May 10, 2024**
  - [Gabon: Selected Issues; IMF Country Report No. 24/145; May 10, 2024 (Markdown version)](/-/media/files/publications/cr/2024/english/1gabea2024002.pdf.md){rel="alternate" type="text/markdown"}
  - [Gabon: Selected Issues; IMF Country Report No. 24/145; May 10, 2024 (PDF)](/-/media/files/publications/cr/2024/english/1gabea2024002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2024/05/31/gabon-selected-issues-549686_