Republic of Equatorial Guinea: Staff Report 2006 Article IV Consultation
IMF Staff Country Reports, June 21, 2006
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Bibliographic details
- Published: June 21, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451815979.002
Summary
- Equatorial Guinea’s macroeconomic performance in the recent period has been broadly satisfactory.
- Despite the macroeconomic environment, progress in alleviating poverty and meeting the MDGs has been slow.
- Executive Directors welcome the government’s intention to prepare a National Poverty Reduction Strategy.
- In the meantime, the budget process needs to be modified.
- The pegged exchange rate regime has served Equatorial Guinea well, providing an anchor to hold down inflation and a positive influence on investors’ confidence.
- The data provided by Equatorial Guinea are broadly adequate for surveillance.
Key findings and thematic issues
- Macroeconomic performance: broadly satisfactory in the recent period.
- Poverty and MDGs: progress has been slow despite favorable macro conditions.
- Policy formulation: government intends to prepare a National Poverty Reduction Strategy.
- Fiscal process: the current budget process requires modification pending a formal NPRS.
- Exchange rate regime: the pegged exchange rate regime has helped hold down inflation and supported investor confidence.
- Data adequacy: data provided are broadly adequate for IMF surveillance.
Policy recommendations and implications
- Prepare and implement a National Poverty Reduction Strategy to accelerate poverty alleviation and progress toward the MDGs.
- Modify the budget process while the National Poverty Reduction Strategy is being prepared to better align fiscal policy with poverty reduction and development objectives.
- Maintain the pegged exchange rate regime, given its role in anchoring inflation and supporting investor confidence.
- Continue to provide and improve data to support effective surveillance.