Malabo: The World Bank issued today the 2025 Equatorial Guinea Economic Update which analyzes the country's recent economic developments and outlook and highlights the importance of a comprehensive accounting of wealth and the role of human, physical, and natural capital in shaping sustainable growth and development, with a focus on the value of forest ecosystem services.

According to African Press Organization, Equatorial Guinea's economy grew by an estimated 0.9% in 2024 (compared to 5.1% in 2023), with higher contributions from the industrial and service sectors. Inflation increased from 2.4% to 3.4% between 2023 and 2024. Soaring food prices, sluggish growth, and limited employment opportunities contributed to rising poverty, with an estimated 57% of the population living below the poverty line ($6.85 in 2017 Purchasing Power Parity) in 2024. Fiscal and external balances deteriorated in 2024, mainly due to declining hydrocarbon export earnings, while the debt-to-GDP ratio declined thanks to the authorities' efforts to clear arrears.

This year's report shows that Equatorial Guinea's produced capital increased 100-fold between 1995 and 2020, bolstered by public investments following major oil and gas discoveries. However, capital accumulation has slowed since the end of the oil boom. While education and health outcomes have improved in Equatorial Guinea in recent years, additional efforts are needed to bring the country's human capital outcomes in line with countries of a similar income level. Despite a 30% decrease in nonrenewable natural capital from 2005 to 2020, the hydrocarbon sector continues to dominate the economy, accounting for over 80% of revenues and nearly 46% of GDP in 2024.

Equatorial Guinea can boost growth and job creation by leveraging forest ecosystem services in wood processing, ecotourism, and agriculture sectors. However, this will require continued investments and reforms to create an enabling environment, said Djeneba Doumbia, Country Economist for Equatorial Guinea and lead author of the report.