In 1959 it had the highest per capita income of Africa which it still has, after several decades as one of the poorest countries in the world. The discovery of large oil reserves in 1996 and their subsequent exploitation have contributed to a dramatic increase in government revenue.
Following independence in 1968, the country suffered under a repressive dictatorship for 11 years, which devastated the economy.
In 1969 Equatorial Guinea produced 36,161 tons of highly bid cocoa, but production dropped to 4,800 tons in 2000.
The economy of Equatorial Guinea has traditionally been dependent on commodities such as cocoa and coffee but is now heavily dependent on petroleum due to the discovery and exploitation of significant oil reserves in the 1980s.
According to the terms of the franc CFA zone, some of these reserves are kept in an account with the French Ministry of Finance. Equatorial Guinea in the 1980s and 1990s received foreign assistance from numerous bilateral and multilateral donors, including European countries, the United States, and the World Bank.
Timber production increased steadily during the 1990s; wood exports reached a record 789,000 cubic meters in 1999 as demand in Asia (mainly China) gathered pace after the 1998 economic crisis.
According to the terms of the franc CFA zone, some of these reserves are kept in an account with the French Ministry of Finance. Equatorial Guinea in the 1980s and 1990s received foreign assistance from numerous bilateral and multilateral donors, including European countries, the United States, and the World Bank.
New investment projects represented about 40% of the budget, and personnel and internal and external debt payments represented about one-third of planned expenditures. The Equato-Guinean Government has undertaken a number of reforms since 1991 to reduce its predominant role in the economy and promote private sector development.
Qualitative restrictions on imports, non-tariff protection, and many import licensing requirements were lifted when in 1992 the government adopted a public investment program endorsed by the World Bank.
A number of aid programs sponsored by the World Bank and the IMF have been cut off since 1993 because of corruption and mismanagement.
Environmentalists fear that exploitation at this level is unsustainable and point out to the permanent damage already inflicted on the forestry reserves on Bioko. Consumer price inflation has declined from the 38.8% experienced in 1994 following the CFA franc devaluation, to 7.8% in 1998, and 1.0% in 1999, according to BEAC data.
Trade regulations have been further liberalized since implementation in 1994 of the ICN turnover tax, in conformity with Central African tax and custom reform codes.
Equatorial Guinea's debt service ratio fell from 20% of GDP in 1994 to only 1% in 2000.
In 1959 it had the highest per capita income of Africa which it still has, after several decades as one of the poorest countries in the world. The discovery of large oil reserves in 1996 and their subsequent exploitation have contributed to a dramatic increase in government revenue.
Timber is the main source of foreign exchange after oil, accounting for about 12.4% of total export earnings in 1996–99.
The government also has discussed working with World Bank assistance to develop government administrative capacity. Equatorial Guinea operated under an IMF-negotiated Enhanced Structural Adjustment Facility (ESAF) until 1996.
The International monetary Fund held Article IV consultations (periodic country evaluations) in 1996, 1997, and in August 1999.
The GDP increased by 105.2% in 1997, and real GDP growth reached 23% in 1999, and initial estimates suggested growth of about 15% in 2001, according to IMF 2001 forecast.
Beginning in early 1997, the government initiated efforts to attract significant private sector involvement through a Corporate Council on Africa visit and numerous ministerial efforts.
The International monetary Fund held Article IV consultations (periodic country evaluations) in 1996, 1997, and in August 1999.
Per capita income grew from about $1,000 in 1998 to about $2,000 in 2000.
Oil production has increased from to between 1998 and early 2001.
Timber production increased steadily during the 1990s; wood exports reached a record 789,000 cubic meters in 1999 as demand in Asia (mainly China) gathered pace after the 1998 economic crisis.
Environmentalists fear that exploitation at this level is unsustainable and point out to the permanent damage already inflicted on the forestry reserves on Bioko. Consumer price inflation has declined from the 38.8% experienced in 1994 following the CFA franc devaluation, to 7.8% in 1998, and 1.0% in 1999, according to BEAC data.
In 1998, the government privatized distribution of petroleum products.
The GDP increased by 105.2% in 1997, and real GDP growth reached 23% in 1999, and initial estimates suggested growth of about 15% in 2001, according to IMF 2001 forecast.
Timber production increased steadily during the 1990s; wood exports reached a record 789,000 cubic meters in 1999 as demand in Asia (mainly China) gathered pace after the 1998 economic crisis.
Environmentalists fear that exploitation at this level is unsustainable and point out to the permanent damage already inflicted on the forestry reserves on Bioko. Consumer price inflation has declined from the 38.8% experienced in 1994 following the CFA franc devaluation, to 7.8% in 1998, and 1.0% in 1999, according to BEAC data.
The CEMAC countries agreed to replace the ICN with a value added tax (VAT) in 1999. While business laws promote a liberalized economy, the business climate remains difficult.
three times between 1999 and 2001 to encourage greater U.S.
Exports totaled about francs CFA 915 billion in 2000 (1.25 G$US), up from CFA 437 billion (700 M$US) in 1999.
Imports totaled francs CFA 380 billion (530 M$US), up from franc CFA 261 million (420 M$US) in 1999.
Imports of capital equipment for public investment projects reached francs CFA 30 billion in 2000, up 40% from 1999 levels. Equatorial Guinea's foreign debt stock was approximately francs CFA 69 billion (100 M$US) in 2000, slightly less than the debt stock in 1999, according to BEAC data.
The International monetary Fund held Article IV consultations (periodic country evaluations) in 1996, 1997, and in August 1999.
After the 1999 consultations, IMF directors stressed the need for Equatorial Guinea to establish greater fiscal discipline, accountability, and more transparent management of public sector resources, especially energy sector revenue.
In 1999, the Equato-Guinean Government began attempting to meet IMF-imposed requirements, maintaining contact with IMF and the World Bank representatives.
In 1999, national production was about 13 MWh.
Per capita income grew from about $1,000 in 1998 to about $2,000 in 2000.
In 1969 Equatorial Guinea produced 36,161 tons of highly bid cocoa, but production dropped to 4,800 tons in 2000.
Coffee production also dropped sharply during this period to bounce back to 100,000 metric tons in 2000.
Consumer prices rose about 6% in 2000, according to initial estimates, and there was anecdotal evidence that price inflation was accelerating in 2001. Equatorial Guinea's policies, as defined by law, comprise an open investment regime.
The 2001 budget foresaw revenues of about 154 billion CFA francs (154 GCFAF) (about U.S.$200 million), up about 50% from 2000 levels.
Oil revenues account for about two-thirds of government revenue, and VAT and trade taxes are the other large revenue sources. Year 2001 government expenditures were planned to reach 158 billion CFA francs, up about 50% from 2000 levels.
Exports totaled about francs CFA 915 billion in 2000 (1.25 G$US), up from CFA 437 billion (700 M$US) in 1999.
Crude oil exports accounted for more than 90% of export earnings in 2000.
Timber exports, by contrast, represented only about 5% of export revenues in 2000.
Imports of equipment used for the oil and gas sector accounted for about three-quarters of imports in 2000.
Imports of capital equipment for public investment projects reached francs CFA 30 billion in 2000, up 40% from 1999 levels. Equatorial Guinea's foreign debt stock was approximately francs CFA 69 billion (100 M$US) in 2000, slightly less than the debt stock in 1999, according to BEAC data.
Equatorial Guinea's debt service ratio fell from 20% of GDP in 1994 to only 1% in 2000.
The GDP increased by 105.2% in 1997, and real GDP growth reached 23% in 1999, and initial estimates suggested growth of about 15% in 2001, according to IMF 2001 forecast.
Oil production has increased from to between 1998 and early 2001.
Consumer prices rose about 6% in 2000, according to initial estimates, and there was anecdotal evidence that price inflation was accelerating in 2001. Equatorial Guinea's policies, as defined by law, comprise an open investment regime.
The 2001 budget foresaw revenues of about 154 billion CFA francs (154 GCFAF) (about U.S.$200 million), up about 50% from 2000 levels.
Oil revenues account for about two-thirds of government revenue, and VAT and trade taxes are the other large revenue sources. Year 2001 government expenditures were planned to reach 158 billion CFA francs, up about 50% from 2000 levels.
three times between 1999 and 2001 to encourage greater U.S.
Additional oil production coming on line in 2001, combined with methanol gas exports from the new CMS-Nomeco plant, should increase export earnings substantially. Imports into Equatorial Guinea also are growing very quickly.
Growth remained strong in 2005 and 2006, led by oil. ==In greater depth== Oil and gas exports have increased substantially (in 2003 Equatorial Guinea was ranked third among Sub-Sahara African producers behind Nigeria and Angola) and will drive the economy for years to come.
It is a project mainly supposed to service the oil industry, but can also relieve the congested Malabo Port due to its closeness. The Oil Jetty at km 5 was supposed to open the end of March 2003.
As of 2004, Equatorial Guinea was the third-largest oil producer in Sub-Saharan Africa.
Growth remained strong in 2005 and 2006, led by oil. ==In greater depth== Oil and gas exports have increased substantially (in 2003 Equatorial Guinea was ranked third among Sub-Sahara African producers behind Nigeria and Angola) and will drive the economy for years to come.
Growth remained strong in 2005 and 2006, led by oil. ==In greater depth== Oil and gas exports have increased substantially (in 2003 Equatorial Guinea was ranked third among Sub-Sahara African producers behind Nigeria and Angola) and will drive the economy for years to come.
After the oil price collapsed in 2014, the economy went into a free fall which put growth in a downward spiral from around 15% to −10%. ==Economy overview== Pre-independence Equatorial Guinea counted on cocoa production for hard currency earnings.
In 2017, it graduated from "Least Developed Country" status, the only Sub-Saharan African nation that managed to do so alongside Botswana. However, despite the economic growth and improving infrastructure, the country has been ranked only 138th out of 188 countries on the United Nations Human Development Index in 2015 and despite its impressive GNI figure, it is still plagued by extreme poverty because its Gini coefficient of 65.0 is the highest in the entire world .
In 2017, it graduated from "Least Developed Country" status, the only Sub-Saharan African nation that managed to do so alongside Botswana. However, despite the economic growth and improving infrastructure, the country has been ranked only 138th out of 188 countries on the United Nations Human Development Index in 2015 and despite its impressive GNI figure, it is still plagued by extreme poverty because its Gini coefficient of 65.0 is the highest in the entire world .
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