Gabon’s cabinet has approved a trimmed 2016 budget of 2.626 trillion CFA francs (US$4.55bn) reflecting the need to carry on with a policy of belt-tightening amid a slump in world oil prices.
The 14% cut (from 2015 budget figures) by petroleum-producing Central African state was forced as the slide in international crude prices dealt a blow to government revenues. Aggravating the fiscal strain caused by the drop in crude prices, Gabon’s oil output is expected to fall by around 8% this year due to ageing oil fields and investment spending will reach 562.8bn CFA francs, more than ⅔ of which will be supported by exterior financing.
Gabon recorded a budget deficit equal to 6.6% of the country’s Gross Domestic Product (GDP) in 2014. Government Budget in Gabon averaged 1.76% of GDP from 1990 until 2014, reaching an all time high of 10.87% of GDP in 2008 and a record low of -12.65% of GDP in 1998. Government Budget in Gabon is reported by the Direction Générale des Statistiques du Gabon.
Gabon is located on the west coast of Central Africa. It has an area of nearly 270,000sq km (100,000 sq mi) and its population is estimated at 1.5 million people. Low population density, abundant petroleum, and foreign private investment have helped make Gabon one of the most prosperous countries in Sub-Saharan Africa, with the 4th highest Human Development Index (HDI) and the third highest GDP per capita in the region.
($1 = 577.5800 CFA francs)