Country Information - Gabon

ECONOMIC BACKGROUND Gabon enjoys a per capita income four times that of most nations of sub-Saharan Africa. This has supported a sharp decline in extreme poverty; yet because of high income inequality a large proportion of the population remains poor. Gabon depended on timber and manganese until oil was discovered offshore in the early 1970s. The oil sector now accounts for 50% of GDP. Gabon continues to face fluctuating prices for its oil, timber, and manganese exports. Despite the abundance of natural wealth, the economy is hobbled by poor fiscal management. In 1992, the fiscal deficit widened to 2.4% of GDP, and Gabon failed to settle arrears on its bilateral debt, leading to a cancellation of rescheduling agreements with official and private creditors. Devaluation of its Francophone currency by 50% on 12 January 1994 sparked a one-time inflationary surge, to 35%; the rate dropped to 6% in 1996. The IMF provided a one-year standby arrangement in 1994-95, a three-year Enhanced Financing Facility (EFF) at near commercial rates beginning in late 1995, and stand-by credit of $119 million in October 2000. Those agreements mandate progress in privatisation and fiscal discipline. France provided additional financial support in January 1997 after Gabon had met IMF targets for mid-1996. In 1997, an IMF mission to Gabon criticized the government for overspending on off-budget items, overborrowing from the central bank, and slipping on its schedule for privatisation and administrative reform. The rebound of oil prices in 1999-2000 helped growth, but drops in production hampered Gabon from fully realizing potential gains. In December 2000, Gabon signed a new agreement with the Paris Club to reschedule its official debt. A follow-up bilateral repayment agreement with the US was signed in December 2001. (Source: World Factbook, 2002) Click here for Country Map [23kB]

BI-LATERAL TRADE OVERVIEW Bi-lateral trade between Gabon and the United States is highly skewed, with the value of Gabon's exports to the U.S. exceeding it's imports more than twenty-fold. In 2002, the country's trade surplus with the U.S. amounted to over $ 1.5 billion, unchanged from the previous year. However, exports to the U.S. were highly concentrated and essentially limited to just a few sectors. Over 95% of the country's exports to the U.S. consisted of 'energy-related' products (mainly oil), the rest consisting mainly of 'minerals and metals' and 'chemicals and related products'. In 2002, over $ 1 billion in exports to the U.S (all 'energy-related products') were AGOA-eligible, the equivalent of approximately 70% of the value of all exports to the US. Gabon in 2002 had the third highest value of AGOA eligible exports to the US, after Nigeria and South Africa. Of these, only South Africa’s exports were relatively diversified. Detailed bilateral trade data for this country, disaggregated by industry sector, can be accessed by following the link below. Aggregate data featuring all AGOA-eligible countries is updated on this website as soon as new data is published, including ranked AGOA / non-AGOA trade, aggregate trade by industry sector as well as the latest apparel trade data. Click here for Detailed Trade Profile