Economic and Fiscal Update

On the Expenditures Side, the Government Has Reduced Both Current and Capital Expenditures The recently adopted 2015 Revised Budget Law reflects Gabon's fiscal consolidation efforts in response to the new oil price environment Adjustments in Public Expenditures (CFA billion) 2015 Revised 2014 Execution Percent of 2015 Initial GDP Budget Law Current Expenditures 1,366 15.2% 1,536 Budget Law 1,334 Salaries 691 7.7% 733 733 Goods and services 265 2.9% 380 299 Transfers and interventions 410 4.6% 424 303 Capital Expenditures 606 6.7% 644 597 Public Investment 350 3.9% 437 319 External project financing 256 2.8% 207 278 Other 37 0.4% 10 12 Expenditures 2,009 22.4% 2,190 1,943 Expenditures Level (CFA billion) ■Current Expenditures ■Capital Expenditures 995 1,000 925 606 597 1,189 1,340 1,268 1,366 1,334 2011 2012 2013 2014 2015* Revised law Sources: Ministry of Economy, Promotion of Investments and Prospective In response to the new oil price environment, the government has taken a conservative approach and adjusted the Initial Budget Law ■ Lower current expenditures driven by: A 21% reduction in goods and services (transportation, stipends, etc.) The removal of consumer fuel subsidies in 2015, following the removal of industrial fuel subsidies in 2014 ■ Capital expenditures have decreased by 7% reflecting: A contraction of government-financed investment by 27%, focusing expenditures on: (i) investments already started and (ii) priority infrastructure investments of the EGSP An increase in externally-financed investments (+34%) to maintain a steady level of capital expenditures ■ Inclusion of a precautionary provisions in the execution of certain expenditure items (goods and services, transfers and interventions, and public investment) to avoid any slippage in the fiscal balance in case of a deterioration in Gabon's oil prices, and totalling CFA 93bn 16

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