The International Monetary Fund forecasts the economy of Equatorial Guinea, OPEC’s smallest member by capacity, will fall back into recession this year.
(Bloomberg) —
The International Monetary Fund forecasts the economy of Equatorial Guinea, OPEC’s smallest member by capacity, will fall back into recession this year.
The nation’s economy may shrink by as much as 7.8% after expanding 3.2% in 2022, the IMF said in a report dated Friday. The decline reflects a slump in oil production and lower growth in the non-oil economy, the Washington-based lender said in the report following a visit to the country.
The nation’s economy is “projected to remain in recession with a further continued decline in oil production and a lackluster non-hydrocarbon economy,” Mesmin Koulet-Vickot, who led the IMF team on a mission to the capital Malabo, said in the statement.
Equatorial Guinea’s government should focus on growing revenue outside of the oil sector and has agreed to phase out regressive fuel subsidies, reduce non-priority capital expenditure and tackle corruption, the IMF said.
Equatorial Guinea experienced a seven-year recession through 2021 due to a slump in oil prices further exacerbated by OPEC production cuts. The 2021 devastation of Bata, the largest city and commercial capital, also contributed to the downturn. A series of blasts at a military base, blamed on improperly stored explosives, killed more than 100 people, leveled much of the town, and halted exports, including crude, from the nearby port.
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