Gabon’s budget deficit widens to 5.3% of GDP in 2025 as debt surpasses 78%

Gabon’s fiscal deficit surged sharply in 2025, reaching 5.3% of gross domestic product (GDP) compared to 3.8% the previous year, according to the African Development Bank’s 2026 Economic Outlook for Africa. The deterioration in public finances stems primarily from an expansionary fiscal policy combined with a growing debt burden. 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 slipped from 3.4% in 2024 to 2.7% in 2025, weighed down by declines in oil, mining, forestry, and transport production. Despite solid performances in public works, manufacturing, and services, government spending aimed at supporting the economy further strained the budget balance, increasing the state’s financing needs.

Growing pressure on public finances

The widening deficit has been accompanied by rising financial vulnerabilities. The African Development Bank notes that the monetary easing by the Bank of Central African States spurred a strong increase in credit extended to the government, deepening banks’ exposure to sovereign risk. Meanwhile, non-performing loans continue to rise, highlighting persistent tensions within the national financial system.

This fiscal situation limits the government’s room to address social challenges. Poverty remained nearly unchanged at 33.1% of the population in 2025, while unemployment stayed high at 20.2%, with a particularly severe impact on youth and women. For the African Development Bank, a sustainable recovery of public finances will require better expenditure control, more manageable debt management, and reforms aimed at boosting state revenues.