Natural Resource Dependency and GDP Fluctuations in Equatorial Guinea

This study investigates the intricate relationship between natural resource dependency and GDP fluctuations in Equatorial Guinea, a country characterized by its significant oil and gas reserves. Since the discovery of hydrocarbons in the late 1990s, Equatorial Guinea has experienced rapid economic growth, positioning itself as one of Africa's fastest-growing economies. However, this growth has been accompanied by pronounced volatility, largely attributed to the country's heavy reliance on natural resources, particularly oil. This research employs a mixed-methods approach, combining quantitative data analysis with qualitative interviews and case studies to explore the dynamics of resource dependency, economic performance, and the implications for sustainable development. The findings reveal that Equatorial Guinea's GDP is highly sensitive to fluctuations in global oil prices, leading to pronounced economic instability. The study identifies key factors contributing to this volatility, including a lack of economic diversification, inadequate investment in human capital, and governance challenges. Despite substantial revenues generated from oil exports, the benefits have not been equitably distributed, resulting in persistent poverty and social inequality. Moreover, the over-reliance on hydrocarbons has hindered the development of other sectors, making the economy vulnerable to external shocks. The research highlights several pathways for mitigating the adverse effects of resource dependency. These include diversifying the economy by promoting sectors such as agriculture, tourism, and renewable energy, as well as enhancing governance frameworks to ensure more equitable distribution of resource revenues. Additionally, investing in education and vocational training is crucial for building human capital and fostering innovation in non-oil sectors. This study contributes to the existing literature on resource-rich economies and offers valuable insights for policymakers, researchers, and stakeholders interested in understanding the complexities of natural resource dependency in Equatorial Guinea. The recommendations provided aim to inform strategic planning and foster sustainable economic development, ultimately improving the living standards of the population and enhancing the country's resilience to external economic fluctuations. By addressing the inherent challenges of resource dependency, Equatorial Guinea can pave the way for a more stable and diversified economic future.