Gabon cuts 2017 budget citing falling oil output

Gabon

Gabon has cut its 2017 budget by more than 5 percent due to persistently low crude prices and falling oil out put.

In a statement released on Thrusday, the cabinet said that next year’s budget will drop to 2.478 trillion CFA franc about $ 4.23 billion from 2.626 trillion CFA franc this year.

This comes after a small budget drop this year and a 14 percent drop in 2015, both due to plummeting crude prices since 2014.

The oil producing central African economy is just from a hotly disputed election in which president Ali Bongo won by a razor- thin margin.

He has promised to diversify Gabon’s economy away from oil but analysts say that a falling budget will likely apply further political pressure on his rule.

Gabon is Africa’s fourth largest oil producer with an out put of around 220,000 barrels per day.