On 24 December 2015 the IMF issued a report following the conclusion of discussions with Gabon under Article IV of the IMF’s articles of agreement.
The report notes that the oil price collapse is a major challenge to Gabon’s economy as oil production accounts for around one third of GDP; contributes 45% of government revenues and represented around 85% of exports in 2014. Economic growth in 2015 is projected to decline to 4%, down from 6% previously, although it has been buoyed by growth in oil production as a result of new wells and productivity improvements.
These developments highlight the need for Gabon to diversify its economy, for example through the Plan Stratégique Gabon Emergent (PSGE). The IMF considers that to safeguard the level of public investment the government should broaden the tax base by reducing tax exemptions and tax expenditures and also look for private financing though public private partnerships.
The report concludes that growth and diversification objectives of the PSGE should be protected and the structural reforms should be accelerated. Gabon should focus on improving economic competitiveness and productivity and strengthening education and infrastructure, rather than offering expensive fiscal incentives to attract investors. Reforms to improve the business climate should be accelerated in line with the existing action plan and Gabon should press for greater regional integration.