IV.

Economy

For years a poor, agricultural nation, Equatorial Guinea has grown more prosperous since the discovery of large offshore oil deposits in the early 1990s. From 1990 to 2003 the country’s gross domestic product (GDP), which measures the total value of goods and services produced, grew by an average of 20 percent every year. Equatorial Guinea’s oil wells produced 75.4 million barrels of crude petroleum in 2004. However, agriculture remains the main source of livelihood for most people.

The principal export crop of Equatorial Guinea is cacao, which is grown almost entirely on Bioko. Coffee is grown on the mainland, which also produces tropical hardwood timber, a leading export. Cassava and sweet potatoes are the staple foods. Local manufacturing industries include the processing of oil, soap, cocoa, yucca, coffee, and seafood. The currency is the CFA franc (528 CFA francs equal U.S.$1; 2005 average). An exchange rate of 50 CFA francs equal to 1 French franc was enforced from 1948 until 1994, when the CFA franc was devalued by 50 percent.