The International Monetary Fund (IMF), in its August 2020 report on the Gabonese economy, notes that Gabon’s public debt remains viable but its dynamics have worsened and the risks to its viability have greatly increased. increased and could reach 74.7% of GDP.
The Gabonese government’s strong propensity to resort to borrowing could have a violent impact on the national economy. This is reported by the International Monetary Fund (IMF), which estimates that Gabon’s public debt “will exceed the high risk benchmark and reach 74.7% of GDP in 2020 and 2021, due to the past domestic arrears that were validated in the outstanding debt in 2019, widening budget deficits and slowing growth ”.
The report also points out that this rate exceeds the convergence threshold of 70% of GDP in force in the Cemac zone, the Economic Community of Central African States (Cameroon, Central African Republic, Congo, Gabon, Equatorial Guinea and Chad). The monetary institution still indicates that the country’s debt will be trending down. It is projected to be 60.2% of GDP in 2025.
In order to mitigate the immediate risks to the sustainability of this debt, the IMF advocates having more solid funding assurances for remaining funding gaps in 2020 and 2021. It also suggests a strategy for managing the debt. credible medium-term debt, as well as prudent fiscal policy.
At the end of the first quarter of 2020, Gabon’s public debt was estimated at 5,600 billion CFA francs, according to the Directorate General of Debt. However, with the onset of the Covid-19 pandemic, the country has already made several other loans.
