Fitch Ratings has cut Gabon's credit rating further into junk territory, citing widening government deficits and declining demand for the country's debt. The ratings company said in a statement on Friday that it had downgraded the nation's long-term foreign-currency rating for the second time this year, to CCC- from CCC.

The downgrade reflects Fitch's concerns over Gabon's increasing reliance on foreign borrowing to finance its budget deficit, which has widened to 6.4% of GDP this year from 4.5% in 2023. The company also noted that the country's debt-to-GDP ratio has risen to 70.4% from 63.4% over the same period.

"Fitch's downgrade is a reflection of the government's failure to address the country's fiscal challenges," said a senior economist at a leading international financial institution, who wished to remain anonymous. "Gabon's economic growth has been sluggish, and the government's reliance on debt to finance its budget deficit is unsustainable in the long term."

Gabon, a small oil-rich country in Central Africa, has faced significant economic challenges in recent years. The country's economy has been heavily reliant on oil exports, which have declined in recent years due to a global surplus of oil. The government has also faced criticism for its handling of the country's natural resources, with many accusing it of corruption and mismanagement.

The downgrade by Fitch is likely to have significant implications for Gabon's ability to access international capital markets. The country has already faced difficulties in refinancing its debt, and the downgrade is likely to increase borrowing costs and make it harder for the government to access new financing.

The International Monetary Fund (IMF) has been working with the Gabonese government to address its fiscal challenges, but progress has been slow. The IMF has recommended that the government implement a range of reforms, including increasing taxes and reducing spending, but the government has been slow to act.

As the situation in Gabon continues to deteriorate, investors are likely to become increasingly cautious. The country's credit rating has been downgraded by several other rating agencies in recent years, and the government's failure to address its fiscal challenges is likely to have significant consequences for the country's economy.

The current status of Gabon's economy remains uncertain, with the government facing significant challenges in addressing its fiscal deficits and debt. The country's reliance on foreign borrowing to finance its budget deficit is unsustainable in the long term, and the government will need to implement significant reforms to restore investor confidence.