JOHANNESBURG, Jan 16 (Reuters) - Equatorial Guinea's economy is expected to contract by 5.5% in 2024, the International Monetary Fund said on Tuesday, adding that the oil-dependent OPEC member state's economy would remain on average in recession over the medium term.
"Near and medium-term growth prospects appear challenging with the projected reduction in oil production and lackluster growth in the non-oil economy due to underlying structural weaknesses," the IMF said in a statement.
The forecast contraction in 2024 follows an 8.8% fall in economic activity in 2023, the IMF said.
Oil and gas production accounts for around three-quarters of revenues of the tiny Central African nation. But output has dwindled in recent years to just over 50,000 barrels per day (bpd), from around 160,000 bpd in 2015, as oil fields mature with no new discoveries coming on stream.
"This outlook is subject to uncertainty, and risks remain titled to the downside," IMF said, adding that the risks include faster-than-projected depletion of oil reserves, waning demand for hydrocarbons amid acceleration of global transition to net zero, and delays in implementing key policy reforms.
The IMF urged the Equatorial Guinea government to pursue reforms to diversify its economy and advance governance and anti-corruption measures to support sustainable economic growth. (Writing by Anait Miridzhanian and Bate Felix; Editing by Chris Reese and Jonathan Oatis)
