Equatorial Guinea's economy experienced a 1.9% year-on-year contraction in the second quarter of 2026, primarily due to a decline in the oil sector. The sector fell by 5.9% year-on-year, driven by a 5.5% decrease in crude oil production and a 7.7% decline in petroleum products. This downturn occurred amidst escalating tensions in the Middle East, which led to a 54% increase in the international price of Brent crude oil, from $67.8 to $104.4 per barrel.
The oil sector's decline had a significant impact on the overall economy, with the petroleum GDP contracting by 1.2% compared to the previous quarter. This followed a 7.2% rebound in the first quarter. In contrast, the non-oil GDP grew by 1.1% year-on-year, driven by various sectors such as forestry and logging, which expanded by 8.7%, and electricity, water, and gas, which rose by 8.1%. The financial sector and restaurants and hotels also experienced growth, at 8.1% and 7.6%, respectively.
Despite the year-on-year growth in the non-oil sector, it declined by 0.4% compared to the previous quarter. This was largely due to a 9.7% drop in restaurants and hotels. The sectoral breakdown revealed that the primary and secondary sectors were the main contributors to the economy's contraction. The primary sector declined by 3.4%, while the secondary sector fell by 4.8%. The tertiary sector, however, grew by 0.8% and added 0.4 percentage points to the real GDP.
The decline in the primary sector was primarily driven by a 4.3% contraction in extractive activities, which offset the growth in other areas. In the secondary sector, the refinery of petroleum products and gas exploitation declined by 7.4%, while construction fell by 6.5%. The tertiary sector saw positive results across all activities, except for public administration services, which decreased by 0.4%.
Compared to the first quarter, the national statistical office attributed the decline to the secondary sector, which subtracted 1.1 percentage points from the GDP. The tertiary sector contributed 0.4 percentage points, while the primary sector remained neutral. The report provides a comprehensive analysis of the country's economic performance, highlighting the challenges faced by the oil-dependent economy.
The oil sector's performance had a significant impact on the overall economy, with the sector's decline contributing to the contraction in the secondary sector. The construction and refinery of petroleum products and gas exploitation were among the activities that declined in the secondary sector. In contrast, the forestry and logging sector experienced significant growth, driven by increased activity in the sector.
The report's findings highlight the need for diversification in Equatorial Guinea's economy, which remains heavily reliant on the oil sector. The growth in non-oil sectors such as forestry and logging, and electricity, water, and gas, suggests potential areas for future development. However, the decline in the oil sector and its impact on the overall economy underscores the challenges facing the country's economic growth.
Key points
- The oil sector's decline contributed to a 1.9% year-on-year contraction in Equatorial Guinea's economy in Q2 2026.
