Equatorial Guinea’s economy contracted by an estimated 5.8 percent in 2023, mainly due to declining oil reserves. The fiscal and external balances deteriorated amid declining oil export earnings. The economy is projected to remain in reces- sion over the medium term. A more-pro- nounced-than-expected decline in oil pro- duction and prices, sustained tightening of global financial conditions, global trade disruptions, and a decline in demand from main export partners represent downside risks to the outlook.