MarketWatch | Cameroon’s economy is forecast to grow 4.6% in 2023, up from 3.8% this year, the International Monetary Fund said late Monday.
“The authorities’ strategy to maintain their fiscal consolidation path, and to reduce fuel subsidies gradually, starting in 2023, while protecting the vulnerable, will help mitigate the impact of recent shocks,” Kenji Okamura, the IMF’s deputy managing director and acting chair, said. “Continued non-oil revenue mobilization and expenditure rationalization will help rebuild fiscal space for strengthening social safety nets, and boosting the recovery, while preserving debt sustainability.”
Cameroon’s economy proved resilient to the Covid-19 shock, but the recovery is now subject to greater uncertainties, with increased inflationary pressures, low vaccination rates, and tightening global financial conditions, Mr. Okamura said.
Inflation is projected to rise to 4.6% in 2022, but to remain below 3% in the medium term, the IMF said.
Cameroon has experienced some positive effects on its external and fiscal positions as a crude oil exporter, it said.
However, intensified higher global prices and supply disruptions have significantly increased the cost of fuel subsidies and are placing additional pressure on Cameroon’s domestic prices, especially for food and fertilizers, it said.
On the upside, Cameroon might benefit from new oil and gas opportunities and the completion of major hydroelectric plants, the IMF said.