A team from the International Monetary Fund (IMF) which carried out a mission to Cameroon in January recognized, at the end of its work trip, that this Central African country has shown resilience in the face of the shock of the Covid-19 pandemic, according to an IMF statement released Monday, January 30.
The financial institution’s experts estimate that, after an increase of 3.6% in 2021, real GDP growth is expected to stand at 3.4% in 2022. Headline inflation is expected to reach 6% by the end of 2022, mainly driven by higher food prices following rising import costs and pressures on domestic supply.
However, they warn, Cameroon continues to face significant challenges in a global environment marked by uncertainty. According to them, the recovery is exposed to some major risks with the adverse effects of the conflict between Russia and Ukraine, including inflationary pressures, supply chain disruptions, and a tightening of global financial conditions.
Prolonged shortages and high fertilizer prices have led to food security challenges, the team said, and welcomed the efforts made by the authorities to ensure an adequate supply of fertilizer for the agricultural campaign with the support of the World Bank and the African Development Bank.
The economic outlook for 2023 is favorable, although subject to considerable risks and vulnerabilities, in particular due to the external economic environment. Economic growth is expected to accelerate to 4.3% in 2023, while inflation is expected to remain around 6% at the end of 2023, experts say.
The purpose of the mission, led by Cemile Sancak, was to lead discussions on the progress made on the authorities’ economic policy reforms and priorities under the third review of the program supported by the Extended Credit Facility (ECF) and the Extended Credit Facility (MEDC).
Cameroon will have access to financing of approximately US$74.6 million once the review is formally completed by the IMF Executive Board in early March 2023.
By OMA Newsletter N° 1031 of 01/02/2023
Article published under the direction of Dr. Najib Kettani
The OMA, NGO with an Intercontinental vocation
For the development of cultural exchanges
Valuing human potential
The promotion and consolidation of Africa’s development, and
Inter-African integration
