The World Bank’s 2024 Economic Update for Equatorial Guinea highlights a 5.7% economic contraction in 2023, driven by losses in the hydrocarbon sector. It advocates for sustainable forestry practices as a means for economic diversification. The report points out the necessity of effective fiscal tools, increased governance, and external support to enhance forest management, enabling the country to preserve its vital ecosystems while boosting economic resilience.
On October 8, 2024, the World Bank released its 2024 Economic Update for Equatorial Guinea, shedding light on the nation’s recent economic trends and prospects, while emphasizing the need for the implementation of effective fiscal mechanisms aimed at promoting sustainable forestry and enhancing economic diversification. Following two years of recovery, Equatorial Guinea’s economy contracted by 5.7% in 2023, attributed primarily to a downturn in the hydrocarbon industry. Although inflation dropped to 2.4% in 2023 from 4.9% in 2022, facilitated by stringent monetary policies by the Bank of Central African States (BEAC), agreements for food imports from Serbia, and lowered import tariffs, significant challenges remain.
Equatorial Guinea’s forestry sector is critical to its economy, constituting 87% of the nation’s land area. However, environmental degradation due to deforestation has escalated over recent years, causing a substantial decline in forestry’s contribution to the GDP since the 1990s. The country, which has shifted from an agricultural and timber-centric economy to one heavily reliant on hydrocarbons, has yet to fully harness the economic potential of its forestry sector, largely due to the limited local processing capabilities of wood products. This situation underscores the urgent need for strategic fiscal policies and regulatory frameworks that enhance forest governance and promote sustainable development initiatives.
The report articulates that fostering a sustainable commercial forestry sector is pivotal for Equatorial Guinea’s economic rejuvenation and environmental stewardship. Empowering the forestry sector through improved governance, effective fiscal policies, and bolstered international support can not only stabilize the nation’s economy but also uphold its commitments to sustainable development. The need for diversified revenue streams and enhanced processing capabilities stands paramount to achieving these objectives.
Original Source: www.miragenews.com
