The World Bank has released the 2025 Equatorial Guinea Economic Update, providing an analysis of the country's recent economic developments and future outlook. The report underscores the significance of a comprehensive wealth accounting approach and highlights the role of human, physical, and natural capital in fostering sustainable growth. A particular focus is placed on forest ecosystem services.
In 2024, Equatorial Guinea's economy grew by an estimated 0.9%, a decrease from 5.1% in 2023. This growth was mainly driven by contributions from the industrial and service sectors. Inflation rose from 2.4% to 3.4% during this period, with rising food prices and limited employment opportunities contributing to increased poverty levels—57% of the population lived below the poverty line in 2024.
The report notes that while produced capital in Equatorial Guinea increased significantly between 1995 and 2020 due to public investments following oil and gas discoveries, capital accumulation has slowed since the end of the oil boom. Despite improvements in education and health outcomes, further efforts are needed to align human capital outcomes with countries of similar income levels.
Juan Diego Alonso, World Bank Group Resident Representative for Equatorial Guinea, stated: “Equatorial Guinea has achieved notable advancements over the past few decades... However, given the decline in the hydrocarbon sector, it is imperative to implement comprehensive reforms to diversify the economy.”
Forest cover decreased from an estimated 97% in 2000 to 94.5% in 2020. While provisioning services like wood remain vital for rural livelihoods, critical regulating services such as carbon sequestration face threats due to forest loss.
Djeneba Doumbia, Country Economist for Equatorial Guinea and lead author of the report said: “Equatorial Guinea can boost growth and job creation by leveraging forest ecosystem services... However, this will require continued investments and reforms.”
The full report is available for download.