The contraction followed modest growth of 0.4% in 2024. Expansion in agriculture and services was insufficient to offset the decline in industry.

Preliminary data indicated that economic activity remained weak in early 2026.

Gross domestic product is projected to contract by an average of about 1% annually during 2026 and 2027 before recovering modestly in 2028, supported by new gas projects.

Government revenue fell to 16.3% of gross domestic product in 2025, while the fiscal deficit stood at approximately 0.5%.

The current-account deficit widened to 1.1% of gross domestic product.

Poverty increased despite easing inflation and is expected to rise further as weak income growth and high living costs place additional pressure on households. “Equatorial Guinea has an opportunity to turn the transition away from oil dependence into a more diversified and job-rich development path,” World Bank Group Resident Representative for Equatorial Guinea Juan Diego Alonso said.

“Achieving this will require sustained implementation of reforms that strengthen human capital, enable private investment and expand opportunities for women and young people.”

The World Bank identified stronger infrastructure, a better business environment and increased private investment as the main priorities.

Investment is needed in education, skills development, electricity, digital connectivity and social protection.

The government should also expand access to finance, strengthen competition, simplify business registration and tax compliance and reduce barriers to formal employment.

Agribusiness offers the strongest near-term potential for large-scale employment and productivity growth, particularly in rural areas.

Tourism could also create substantial opportunities for women and young people by building on Equatorial Guinea’s biodiversity and natural assets.

Fisheries, digital services and energy-related activities provide additional opportunities for economic diversification. “The jobs challenge is both urgent and manageable,” World Bank Country Economist for Equatorial Guinea Djeneba Doumbia said.

“The country needs to act now to improve learning and skills, lower the barriers facing firms and channel public and private investment towards sectors that can create employment at scale.”

–WorldBank/ChannelAfrica–