Sub-Saharan Africa Average = 54.7
World Average = 60.6
1995
2007
100
80
60
40
20
0
169
QUICK FACTS
How Do We Measure Economic Freedom? See Chapter
3 (page 37) for an explanation of the methodology or
visit the Index Web site at heritage.org/index.
EQUATORIAL GUINEA
Population: 0.5 million
GDP (PPP): $25.7 billion (2005 estimate)
32.4% growth in 2004
30.1% 5-yr. comp. ann. growth
$50,200 per capita (2005
estimate)
Unemployment: 30% (1998 estimate)
Inflation (CPI): 3.8%
FDI (net inflow): $1.7 billion (gross)
Official Development Assistance:
Multilateral: $9 million
Bilateral: $42 million (0.1% from the U.S.)
External Debt: $353.0 million (2005
estimate)
Exports: $4.6 billion (2004 estimate)
Primarily petroleum, methanol, timber,
cocoa
Imports: $1.5 billion (2004 estimate)
Primarily petroleum sector equipment,
other equipment
Equatorial Guinea’s economy is 53.2 percent free, accord-
ing to our 2007 assessment, which makes it the world’s
128th freest economy. Its overall score is 3 percentage
points higher than last year, partially reflecting new meth-
odological detail. Equatorial Guinea is ranked 27th out
of 40 countries in the sub-Saharan Africa region, and its
overall score is equal to the regional average.
Equatorial Guinea does not rank strongly in any category.
Both the top income tax rate and the top corporate tax
rate are a high 35 percent, and tax revenue is not large as
a percentage of GDP. Government expenditures rely heav-
ily on income from state-owned businesses (mainly oil).
Inflation is relatively low because the currency is pegged
to the euro.
Equatorial Guinea is beset by serious, self-imposed
economic barriers. Business freedom, trade freedom,
investment freedom, property rights, and freedom from
corruption are weak. Regulations are burdensome, and
business operations are significantly hampered by red
tape. The average tariff rate is high, and the inefficient
and corrupt bureaucracy makes the customs process dif-
ficult. Property rights are not secured by an independent
ju