Foreign investment in several sectors of the economy is restricted, and state-owned enterprises distort markets. Due to the high level of uncertainty in current global economic conditions, the April 2020 WEO database and statistical tables contain only these indicators: real GDP growth, consumer price index, current account balance, unemployment, per capita GDP growth, and fiscal balance. Be on the lookout for your Britannica newsletter to get trusted stories delivered right to your inbox. Equatorial Guinea’s economy traditionally depended on three commodities—cocoa (from the cacao tree ), coffee, and timber—but the discovery and exploitation of petroleum and natural gas changed the country’s economic profile virtually overnight in the 1980s. Prior to independence, the money economy was based on the production of cocoa (mostly on Bioko) and coffee and timber (in Río Muni). The initiative is divided into two phases beginning in 2008 and ending in 2020. Undeveloped mineral resources include gold, zinc, diamonds, columbite-tantalite, and other base metals. Exports of coffee almost ceased from island and mainland plantations, an exception being the small production of robusta coffee by Fang farmers in Río Muni. Equatorial Guinea’s exports of oil and gas rose substantially in 2007. Subsistence farming is the predominant occupation in Equatorial Guinea, although only 5% of the land is arable. Before independence, the Spanish subsidized cocoa and coffee exports to Spain. The petroleum sector accounted for … Economic Overview. On 1 January 1985, the country became the first non-Francophone African member of the franc zone, adopting the CFA franc as its currency. Equatorial Guinea was once one of Africa’s fastest-growing economies and sub-Saharan Africa’s third-largest oil producer, but its economy is now in decline because of corruption, falling oil revenues, and lack of diversification. Equatorial Guinea hosted two economic diversification symposia in 2014 that focused on attracting investment in five sectors: agriculture and animal ranching, fishing, mining and petrochemicals, tourism, and financial services. Petroleum now accounts for the vast majority of Equatorial Guinea’s exports and contributes more than four-fifths of its gross domestic product (GDP). It consists of Río Muni (also known as Continental Equatorial Guinea), on the continent, and five islands (known collectively as insular Equatorial Guinea): Bioko (formerly Fernando Po), Corisco, Great Elobey (Elobey Grande), Little Elobey (Elobey Chico), and Annobón (Pagalu). See how Equatorial Guinea compares to another country using any of the measures in the Index. The ruling party controls 99 of 100 parliamentary seats. More recently, substantial gas reserves have also been discovered. Equatorial Guinea continues to struggle to emerge from the economic recession caused by the 2014 slump in oil prices. In 2018, the Supreme Court approved the dissolution of the main opposition party and 30-year prison sentences for nearly two dozen opposition members; Obiang later declared a total amnesty for political prisoners. On the external front, lower commodity prices and a global economic slowdown could undermine growth in Guinea. GDP Annual Growth Rate in Equatorial Guinea averaged 11.12 percent from 1986 until 2019, reaching an all time high of 95.26 percent in 1997 and a record low of -9.10 percent in 2015. In 2007, Equatorial Guinea's exports totaled $10.03 billion. The mainland is home to Equatorial Guinea’s largest city, Bata, and the country’s intended future capital, Ciudad de la Paz. A major economic reorientation took place in December 1983, when Equatorial Guinea joined the Customs and Economic Union of Central Africa (which later became part of the Economic Community of Central African States). Its overall score has increased by 7.3 points due to a large increase in the score for fiscal health. Equatorial Guinea had argued that the building was subject to diplomatic immunity. Its overall score has increased by 0.8 point due to an improvement in the score for fiscal health. Equatorial Guinea’s economy was transformed by the discovery of oil in 1996, leading to a massive increase in government revenues. Executive power is vested in the president, who is elected by direct universal suffrage for a seven-year term, with a limit of two terms. Many observers have criticized the country’s presidential and parliamentary elections as being irregular or fraudulent. Read more about Equatorial Guinea Economy. With the rapid expansion of the oil industry in the 1980s and ’90s, however, the value of the country’s exports exceeded that of its imports by the end of the 20th century; the balance of trade remained positive into the 21st century. With the phasing out of the French franc during 1999–2002, the CFA franc became linked to the euro. In 2016, the economy of Equatorial Guinea was still dominated by the petroleum sector, which accounted for 85% of gross domestic product (GDP) and more than 94% of exports in 2015, according to the International Monetary Fund (IMF). Equatorial Guinea Overview: Economy. The legislature is bicameral, consisting of the Chamber of Deputies, members of which are directly elected to five-year terms, and the Senate, the majority of its members being directly elected and the rest appointed by the president and all of them serving five-year terms. 5.- Secretary of State, Charged with Economic and Patrimonial Affairs of Equatorial Guinea Abroad, Ms. MARIA ÁNGELES MIAGA BIBANG. 6.- Secretary of State for Justice, Worship and Penitentiary Institutions, Ms. RIMMÉ BOSIO RIOCALO. The country has vast resource of gas and timber but does not manufacture anything. Equatorial Guinea - Economy History Equatorial Guinea, formerly known as Spanish Guinea, is composed of the territories of Fernando Poo and Rio Muni on … Obiang has won every election since taking office; likewise, the PDGE has maintained a decisive majority in the legislature. Although the government has made impressive investments in infrastructure and is building a new capital to inspire development on the mainland, private-sector growth outside of the oil sector will continue to lag without significant reforms to improve the rule of law and the regulatory environment. French and Portuguese are spoken also. From a level of 6 000 barrel per day (bpd), with the coming on steam of the Zafiro and Alba oil fields in August 1996, oil production has started to become an important and growing resource, and by 2000 the Equatorial Guinea hosted two economic diversification symposia in 2014 that focused on attracting investment in five sectors: agriculture and animal ranching, fishing, mining and petrochemicals, tourism, and financial services. Among the crops grown are cassava (manioc), sweet potatoes, oil palm fruit, plantains, bananas, coconuts, coffee, and cacao. Live estimate for national public debt today and since the beginning of the year. The ruling party in Equatorial Guinea is the Democratic Party of Equatorial Guinea (Partido Democrático de Guinea Ecuatorial; PDGE), formed in 1987. With this development there was also a … Teodoro Obiang Nguema Mbasogo—in office since overthrowing Francisco Macías Nguema in 1979—exercises extensive power. As with other commodities, production suffered under the postindependence regime of Francisco Macías Nguema: Nigerian and local workers left the cocoa plantations; maintenance, output, and quality declined; and cocoa exports dropped to one-tenth of their former level. There are international airports at Malabo and Bata as well as several regional airports. From being an impoverished economy , largely agricultural, it has become the leading oil producer in the CEMAC zone and the third largest oil … Equatorial Guinea’s financial system remains very underdeveloped. This page provides forecast and historical data, charts, statistics, news and updates for Equatorial Guinea Unemployment Rate. The country has been one of the fastest growing economies in Africa in the past decade. Today, despite the changes in the economy wrought by the dramatic growth of the petroleum industry, the majority of people are still employed in agriculture. Opposition parties do not wield much influence in the government, however, as Pres. Equatorial Guinea GDP Annual Growth Rate Despite its small size, Equatorial Guinea is the third largest oil exporter in sub-Saharan Africa. For administrative purposes, the country is divided into two régiones (regions), which are subdivided into provincias (provinces); the provinces are further divided into districts and municipalities. The mainland coastal settlements of Mbini and Kogo (Cogo) are minor ports of call. Sheep, goats, pigs, and cattle are raised. Its overall score has increased by 0.8 point due to an improvement in the score for fiscal health. In 2007, Equatorial Guinea's exports totaled $10.03 billion. Equatorial Guinea has been the fastest -rowing economy in Africa over the past 15 years and one of the fastest growing in the world. By signing up for this email, you are agreeing to news, offers, and information from Encyclopaedia Britannica. 6.- Secretary of State for Justice, Worship and Penitentiary Institutions, Ms. RIMMÉ BOSIO RIOCALO. Foreign companies must guard against the taint of money laundering, which occurs frequently through cross-border currency transactions and illegal international cash transfers by local companies or corrupt individuals. Live estimate for national public debt today and since the beginning of the year. Equatorial Guinea is one of the largest oil producers in Africa. With this development there was also a … 5.- Secretary of State, Charged with Economic and Patrimonial Affairs of Equatorial Guinea Abroad, Ms. MARIA ÁNGELES MIAGA BIBANG. National airlines have been unsuccessful. Overview: This page contains the latest international trade data for Equatorial Guinea.In 2018 Equatorial Guinea was the number 131 economy in the world in terms of GDP (current US$), the number 109 in total exports, the number 176 in total imports, and the number 136 most complex economy according to the Economic Complexity Index (ECI). Capital markets are nonexistent, and long-term financing is hard to obtain. Equatorial Guinea is ranked 42nd among 47 countries in the Sub-Saharan Africa region, and its overall score is well below the regional and world averages. Economy - Equatorial Guinea | Statista Market Forecast Equatorial Guinea: The GDP (gross domestic product) in Equatorial Guinea is forecast to amount to US$9.59bn in 2024. Bata is linked with the coastal town of Mbini by a tarred road. Note: Percentile ranks are calculated using the latest available data for all countries within the last 5 years. Equatorial Guinea. Current GDP (estimated data for 2020) and national debt. Government spending has amounted to 21.3 percent of the country’s output (GDP) over the past three years, and budget deficits have averaged 3.6 percent of GDP. Property Rights 38.1 Create a Graph using this measurement, Judicial Effectiveness 19.5 Create a Graph using this measurement, Government Integrity 15.1 Create a Graph using this measurement. Unemployment Rate for Equatorial Guinea from The World Bank for the World Development Indicators (WDI) release. Equatorial Guinea, country located on the west coast of Africa. There are no railways in the country. Trade Freedom 48.8 Create a Graph using this measurement, Investment Freedom 40.0 Create a Graph using this measurement, Financial Freedom 30.0 Create a Graph using this measurement. The gap was narrowed only by external aid—including large subsidies from Spain and help from many other countries and international agencies—which increased after the coup in 1979. Current GDP (estimated data for 2020) and national debt. In January 1985 the country entered the Franc Zone, whereby its currency, the epkwele (formerly linked to the Spanish peseta), was replaced by the CFA (Communauté Financière Africaine) franc and linked to the French franc. Fishing contributes to the economy as well, and the timber industry remains significant. Once they began to be exploited in the late 20th century, hydrocarbons quickly dominated the economy. GDP growth had been robust in the past, owing to exports from the country’s oil and gas sector, but in recent years, GDP has recorded significantly negative growth because of lower world oil prices and declining output. Equatorial Guinea, country located on the west coast of Africa. 7.- Secretary of State for National Defence, Mr. … President Teodoro Obiang, currently Africa’s longest-serving leader, seized power in a 1979 coup and won reelection to another seven-year term in 2016 with 93 percent of the vote. Tax Burden 75.1 Create a Graph using this measurement, Government Spending 86.4 Create a Graph using this measurement, Fiscal Health 77.2 Create a Graph using this measurement. Equatorial Guinea economy 2007-2008. It was the only political party until 1991, when a new constitution allowing opposition parties was adopted. Most of Equatorial Guinea’s cocoa is still produced on the island. Equatorial Guinea economy 2007-2008. Property rights are enforced selectively, and the government can seize land with very little if any due process. Before independence Equatorial Guinea exported cocoa, coffee and timber, mostly to its colonial ruler, Spain, but also to Germany and the UK. The national currency, the ekwele, had previously been linked to the Spanish peseta. In a series of annual reports, Doing Business assesses regulations affecting domestic firms in 189 economies and ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency and trading across borders. The comparable figure for imports was $3.219 billion in same reference period. In 2018 Equatorial Guinea was the number 131 economy in the world in terms of GDP (current US$), the number 109 in total exports, the number 176 in total imports, and the number 136 most complex economy according to the Economic Complexity Index (ECI). This page has economic forecasts for Equatorial Guinea including a long-term outlook for the next decades, plus medium-term expectations for the next four quarters and short-term market predictions for the next release affecting the Equatorial Guinea economy. The inflation rate remains low, at 1.4% in 2019 versus 1.3% in 2018, below the CEMAC target of 3%. Equatorial Guinea’s real GDP growth has been weak in recent years, averaging -0.5% per year from 2010 to 2014, because of a declining hydrocarbon sector. 7.- Secretary of State for National Defence, Mr. … The total value of exports and imports of goods and services equals 97.5 percent of GDP. All Rights Reserved. Pre-independence Equatorial Guinea counted on cocoa production for hard currency earnings. Beyond the energy sector, economic prospects are weak. Equatorial Guinea’s economic freedom score is 48.3, making its economy the 167th freest in the 2020 Index. Equatorial Guinea has a single University, Universidad Nacional de Guinea Ecuatorial, the main campus is 5 miles from Malabo, with a Medical School at Bata on the mainland. Following the economic collapse of the mid-1970s, imports came to exceed exports. Equatorial Guinea’s economic freedom score is 48.3, making its economy the 167th freest in the 2020 Index. The judicial system is not independent, as the president is also the chief magistrate. Efforts have been made to improve educational opportunities, and illiteracy has declined over the years; well more than four-fifths of the population is literate. The overall tax burden equals 5.9 percent of total domestic income. Equatorial Guinea is one of the richest countries in Africa. Economy | November 19th 2020 Opposition activist found dead in Equatorial Guinea The incident comes at a bad time for the regime as it works to rejoin the Extractive Industries Transparency Initiative. Equatorial Guinea gained independence from Spain in 1968. Home | Country Rankings | Graph The Data | Heat MapExplore the Data | Downloads | FAQs| About The Index. The United States, China, Japan, Spain, and France, among others, are major trade partners of Equatorial Guinea. Our latest episode for parents features the topic of empathy. The National University of Equatorial Guinea is located in Malabo. Economy. There are also subordinate courts. For example, Equatorial Guinea’s Exports rank is higher than (please wait...) of the countries in the dataset. Business Freedom 37.5 Create a Graph using this measurement, Labor Freedom 34.2 Create a Graph using this measurement, Monetary Freedom 78.1 Create a Graph using this measurement. Real GDP is estimated to have shrunk by 4.1% in 2019 after a contraction of 6.1% in 2018 due to less activity in the oil sector. Education is compulsory and free for all children ages 6 to 11. Undeveloped mineral resources include gold, zinc, diamonds, columbite-tantalite, and other base metals. To get IMF bailout, Equatorial Guinea’s ruler must reveal assets. Inflation remained very low in 2016, down from an average of 4% in 2014. After the discovery of large oil reserves in the 1990s, Equatorial Guinea became the third-largest producer of oil in Sub-Saharan Africa, after Nigeria and Angola. 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