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Gabon faces rising debt interest and cost of living pressures
Gabon is experiencing significant fiscal and economic strain, characterized by rising debt servicing costs and persistent challenges regarding the cost of living. According to an economic note from October 2026, the Gabonese state paid 530 billion FCFA (approximately 900 million USD) in debt interest in 2025. This amount represents nearly one-fifth of public revenues and 4.1% of the country's GDP, marking a 28% increase from the previous year.
The country's reliance on oil revenues leaves public finances vulnerable to fluctuations in production and global prices. The World Bank's 2026 economic update noted a clear degradation of public finances in 2025, recommending improved revenue mobilization and stricter expenditure control.
Simultaneously, the cabinet AILA has raised concerns regarding the effectiveness of government measures to combat the rising cost of living. Despite tax suspensions and price caps, households face shortages of essential goods, including three episodes of fuel and domestic gas shortages within a ten-month period. AILA also reported rising prices for staples, noting that flour prices have increased and bread is reportedly being sold above official price limits in some locations.
Entities
AILA · CEMAC · Gabon · World Bank