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High oil prices, and Equatorial Guinea's low population (around 633,000 in 2009), have given the country a GDP-per-capita ranking of 22^nd in the world, according to the World Bank in 2007: this figure, which is higher than Italy or Israel, masks the country's real poverty and its endemic economic problems. Aside from the oil industry and cocoa and timber exports, Equatorial Guinea's labour force remains heavily dependent on subsistence agriculture, even though it makes up only 2.7% of GDP, compared to 92.6% for industry.

Oil revenues and persistent mismanagement have rendered Equatorial Guinea ineligible for concessional financing by international financial institutions. It has, however, sought IMF and World Bank assistance to develop a financial and administrative reform program. Both of these institutions have repeatedly stressed the need to develop the country's institutional capacity and diversify the economy away from oil. The government has made some progress, for instance by liberalising trade regulations, incentivising local training and jobs and selling off some state enterprises.

The country's development has been boosted in recent years by Chinese investment, following the established pattern by which Beijing builds infrastructural projects and power plants in exchange for favoured access to the country's natural resources. The Chinese overseas oil giant CNOOC Ltd. signed a production-sharing agreement in 2006 for an offshore oil block, and China has also been Equatorial Guinea's biggest importer for timber, much of which was logged illegally.

GDP growth in 2008 was 11.2%, up from 9.5% in 2007 and -1.9% in 2006. Although the Equatoguinean economy is more or less insulated from the global capital markets (due to its under-developed financial sector), the slowdown in world oil demand and the slump in trade volumes will cause its economic growth to slow or even contract in 2009. Inflation was approximately 7.5% in 2008, which is certainly manageable.

The current account balance in 2008 was $1.837 billion, the fourth largest in Africa, whilst its foreign exchange reserves were $5.5 billion. This is expected to decline as economic growth slows.

Corruption and mismanagement remains the biggest problem facing the economy. High profile cases, involving foreign oil contractors, are the most notorious. In 2004, the US Senate finally published an investigation into notorious US Bank Riggs & Co. The accounts showed vast sums of illegally laundered money being deposited and withdrawn by members of Equatorial Guinea's political elite, including some $35 million siphoned off from international aid by President Obiang. The report describes one incident in which the bank manager of the country's accounts, Simon Kareri brought a 27 kilogram suitcase with $3 million in plastic-wrapped cash to Riggs's Dupont Circle branch to make a deposit into President Obiang's account.

Behind the headlines, corrupt local officials and a lack of sustainable development policies by outside investors have led to huge income disparities. Booming economic growth has concealed the fact that Equatorial Guinea's Human Development Index, according to the UN, is 115^th out of 177. This is a slight improvement on the previous years' ranking of 127^th, but not much of one given the country's oil wealth. Whilst key industries remain in the hands of government officials and their families, and whilst corruption remains endemic throughout the state, Equatorial Guinea's HDI score is unlikely to improve.