Gabon’s budget deficit worsened sharply in 2025, reaching 5.3% of gross domestic product (GDP), up from 3.8% the previous year. This deterioration in public finances was driven mainly by an expansionary fiscal policy combined with a heavier debt load. Public debt climbed to 78.9% of GDP, a level that contributed to the downgrade of the country’s sovereign rating in December 2025.
This development comes amid a slowdown in economic activity. GDP growth fell from 3.4% in 2024 to 2.7% in 2025, hurt by declining output in oil, mining, forestry and transport sectors. Despite strong performances in public works, manufacturing and services, government spending intended to support the economy weighed more heavily on the fiscal balance, increasing the state’s financing needs.
Growing pressure on public finances
The widening deficit is accompanied by rising financial vulnerabilities. An easing of monetary policy by the central bank of Central African states spurred a strong increase in credit extended to the government, heightening banks’ exposure to sovereign risk. At the same time, non-performing loans continue to rise, reflecting ongoing strains in the domestic financial system.
This fiscal situation limits the government’s room to address social challenges. Poverty remained nearly stable at 33.1% of the population in 2025, while unemployment stayed high at 20.2%, with a particularly severe impact on youth and women. A sustainable recovery of public finances will require better spending control, more manageable debt, and reforms to boost state revenues.
