Equatorial Guinea Economy Contracts Amid Oil Decline

Equatorial Guinea's economy contracted by 5.8% in 2025, following a modest 0.4% growth in 2024. This decline reflects the impact of falling oil and gas production on national income and government revenue.

The World Bank's report emphasizes the need for job creation outside the hydrocarbon sector, focusing on education, private enterprise, and labor-intensive industries to support future economic growth.

Government revenue fell to 16.3% of GDP in 2025, with a fiscal deficit of 0.5% of GDP and a current account deficit of 1.1% of GDP, highlighting the financial strain from declining oil exports.

The report warns that continued economic weakness could worsen poverty, as weak income growth and high living costs reduce household purchasing power and limit employment prospects.

To address these challenges, the World Bank suggests improving education, infrastructure, and business conditions, while also promoting sectors like agribusiness and tourism for job creation.

The report highlights the potential of agribusiness to boost rural employment and diversify income sources, as well as tourism's role in creating opportunities for women and young people through hospitality and related industries.