Equatorial Guinea: Economy
Subsistence farming is the predominant occupation in Equatorial Guinea, although only 5% of the land is arable. Prior to independence, the money economy was based on the production of cocoa (mostly on Bioko) and coffee and timber (in Río Muni). Following severe deterioration of the rural economy, the government has made efforts to increase production of these products to preindependence levels. Other agricultural products include rice, yams, cassava, bananas, and palm oil. Livestock are raised and there is a fishing industry. There is food processing, sawmilling, and the manufacture of basic consumer items. The discovery and exploitation of large offshore oil and natural gas deposits increased economic growth beginning in the late 1990s, but the oil and gas revenue, largely lost to government corruption, has not significantly improved the standard of living in the generally improverished nation. The country also has unexploited deposits of titanium, iron ore, manganese, uranium, and gold. Both Río Muni and Bioko have substantial road networks; there are no railroads. Malabo is the main port.
The value of Equatorial Guinea's exports is considerably higher than the cost of its imports. The United States is the country's largest trading partner, followed by China, Spain, Italy, and France. The main exports are petroleum, methanol, timber, and cocoa; the chief imports are petroleum equpment and other machinery, foodstuffs, and beverages. Equatorial Guinea continues to depend heavily on foreign investment.
The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved.
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