Country Report Gabon April 2011

Outlook for 2011-12: Economic growth

With real GDP growth estimated to have rebounded by 5.7% in 2010, following a 1% contraction in 2009, growth is expected to accelerate in 2011 to 6.1%, easing slightly to 5.1% in 2012. The key driver in 2011 will be a new oil well coming online that could boost waning output by up to 10% to 250,000 barrels/day, although output at other fields may continue to weaken as fields mature and labour remains restive. Growth will be further supported by investment in and output from other sectors-such as forestry and manganese-that are increasing value-added operations and volume output. Take-home pay may be rising, but purchasing power will be undermined in 2011 by accelerating price growth. Fixed investment, such as the construction of Gabon's first special economic zone, will also be important, driven by the government's generous spending plans, which are supported by buoyant oil prices. Banking and telecommunications should also drive non-oil growth. Industrial unrest presents a constant risk to output over the forecast period.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
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