Gabon: First and Second Reviews of the Extended Arrangement under the Extended Fund Facility, Requests for Waivers for Nonobservance of Performance Criteria, Establishment of Performance Criteria, and Financing Assurances Review-Press Release; Staff R

This paper presents Gabon’s First and Second Reviews of the Extended Arrangement under the Extended Fund Facility, Requests for Waivers for Nonobservance of Performance Criteria, Establishment of Performance Criteria, and Financing Assurances Review. Program implementation has been mixed amid pandemic-related disruptions. A nascent economic recovery is underway, and the medium-term outlook is broadly positive amidst higher oil prices, but it remains subject to considerable uncertainty. The war in Ukraine will affect the economy through higher food and fuel prices. Expediting the design of well-targeted social safety nets will also be critical to providing adequate support to vulnerable households and strengthening social protection. Addressing structural reforms, including governance and corruption weaknesses is paramount to achieve strong and inclusive growth. Enhancing the banking sector and implementing an effective financial inclusion strategy, improving the business environment, and strengthening the anti-corruption framework will help address bottlenecks in the economy and promote private investment.