Gabon’s budget deficit widens to 5.3% of GDP in 2025

Gabon’s budget deficit widened significantly in 2025, reaching 5.3% of gross domestic product (GDP), compared to 3.8% in 2024. The deterioration stemmed from an expansionary fiscal policy combined with a growing debt burden. Public debt climbed to 78.9% of GDP, contributing to the downgrade of the country’s sovereign credit rating in December 2025.

This development came amid an economic slowdown. GDP growth decelerated from 3.4% in 2024 to 2.7% in 2025, dragged down by declines in oil, mining, forestry, and transport output. Although public works, manufacturing, and services performed well, government spending aimed at supporting the economy further strained the fiscal balance, increasing the state’s financing needs.

Growing pressure on public finances

The widening deficit has been accompanied by rising financial vulnerabilities. Monetary easing by the Bank of Central African States spurred a strong increase in credit extended to the government, heightening banks’ exposure to sovereign risk. Meanwhile, non-performing loans continue to climb, reflecting persistent tensions in the national financial system.

This fiscal situation limits the government’s ability to address social challenges. Poverty remained nearly unchanged at 33.1% of the population in 2025, while unemployment stayed high at 20.2%, with a particularly severe impact on youth and women. Sustainable fiscal recovery will require better spending control, more manageable debt levels, and reforms to boost state revenues.