The World Bank published its fourth Equatorial Guinea Economic Update, setting out policy options to create jobs and diversify the economy as hydrocarbon production declines. The report prioritizes stronger infrastructure and skills, improvements to the business environment and private investment in sectors with substantial employment potential. The economy contracted by an estimated 5.8% in 2025, following growth of 0.4% in 2024, as gains in agriculture and services failed to offset falling hydrocarbon output. Economic activity remained weak in early 2026, and gross domestic product is projected to contract by about 1% annually on average during 2026-27 before a modest recovery in 2028 supported by new gas projects. Fiscal and external pressures intensified in 2025. Poverty increased despite easing inflation and is expected to rise further in the near term. The policy priorities include improving education and aligning skills with labor market needs, alongside investment in electricity, digital connectivity and social protection. Business reforms would expand access to finance, strengthen competition and simplify firm entry and tax compliance, while reducing barriers to formal employment. The report identifies the green economy, including agribusiness, as offering the greatest potential for job creation at scale and productivity growth in the near term, particularly in rural areas. Tourism also offers employment opportunities, especially for women and youth. Sustained reform implementation and stronger private sector participation are central to realizing these opportunities.

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