Gabon’s budget deficit widened sharply in 2025, reaching 5.3% of gross domestic product (GDP), up from 3.8% a year earlier. This deterioration in public finances stems primarily from an expansionary fiscal policy combined with an increasingly heavy debt burden. Public debt rose to 78.9% of GDP, a level that contributed to the downgrade of the country’s sovereign rating in December 2025.
The fiscal worsening comes amid a slowdown in economic activity. GDP growth fell from 3.4% in 2024 to 2.7% in 2025, hit by declines in oil, mining, forestry and transport output. Despite strong performances in public works, manufacturing and services, government spending to support the economy weighed more heavily on the budget balance, increasing the state’s financing needs.
Growing pressure on public finances
The widening deficit is accompanied by rising financial vulnerabilities. The easing of monetary policy by the central bank of Central African states spurred a sharp increase in credit extended to the government, heightening banks’ exposure to sovereign risk. Meanwhile, non-performing loans continue to rise, reflecting ongoing strains in the national 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. Lasting fiscal recovery will require better spending control, more sustainable debt management, and reforms to boost state revenue.
