rp decline in extreme
poverty; yet because of high income inequality a large proportion of
the population remains poor. Gabon depended on timber and manganese
until oil was discovered offshore in the early 1970s. The oil sector
now accounts for 50% of GDP. Gabon continues to face fluctuating
prices for its oil, timber, and manganese exports. Despite the
abundance of natural wealth, poor fiscal management hobbles the
economy. Devaluation of its Francophone currency by 50% on 12
January 1994 sparked a one-time inflationary surge, to 35%; the rate
dropped to 6% in 1996. The IMF provided a one-year standby
arrangement in 1994-95, a three-year Enhanced Financing Facility
(EFF) at near commercial rates beginning in late 1995, and stand-by
credit of $119 million in October 2000. Those agreements mandate
progress in privatization and fiscal discipline. France provided
additional financial support in January 1997 after Gabon had met IMF
targets for mid-1996. In 1997, an IMF mission to Gabon criticized
the government for overspending on off-budget items, overborrowing
from the central bank, and slipping on its schedule for
privatization and administrative reform. The rebound of oil prices
in 1999-2000 helped growth, but drops in production hampered Gabon
from fully realizing potential gains. In December 2000, Gabon signed
a new agreement with the Paris Club to reschedule its official debt.
A follow-up bilateral repayment agreement with the US was signed in
December 2001. Short-term progress depends on an upbeat world
economy and fiscal and other adjustments in line with IMF policies.

GDP:
purchasing power parity - $7.301 billion (2003 est.)

GDP - real growth rate:
1.2% (2003 est.)

GDP - per capita:
purchasing power parity - $5,500 (2003 est.)

GDP - composition by sector:
agriculture: 8.1%
industry: 48.8%
services: 43.1% (2003 est.)

Investment (gross fixed):
22.7% of GDP (2003)

Population below poverty line:
NA

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):
0.5% (2003 est.)

Labor force:
610,000 (2003)

Labor force - by occupation:
agriculture 60%, industry 15%, services 25%

Unemployment rate:
21% (1997 est.)

Budget:
revenues: $1.771 billion
expenditures: $1.413 billion, including capital expenditures of $310
million (2003 est.)

Public debt