The pace of growth in Cameroon "should decelerate in 2015 and 2016"

The pace of growth in Cameroon "should decelerate in 2015 and 2016 with respective projections of 5.5% and 5.1%, despite the impetus of a proactive economic policy, the development of agricultural value chain, a robust domestic demand and an increase in energy supply,” according to a report released by the National Monetary and Financial Committee.

These projections are showering the enthusiasm of the National Statistics Institute (INS), which recorded the rate of growth “of between 5.5% and 6.0%” during the same period.

Similarly, President Paul Biya, in his circular on the preparation of the state budget for the year 2016 a few days ago, has relied on Gross Domestic Product growth (GDP) to 6%.

According to the National Monetary and Financial Committee, the Cameroonian economy currently faces two ‘shock waves’; one of which is linked to the security and humanitarian crisis in the northern and eastern parts of the country and the other to the fall of crude oil to which results to an unfavorable international environment.

Despite these externalities, the national economy has shown resilience in the first quarter of 2015. Fiscal policy is being accompanied by a slight increase in public spending and a slight decline in tax revenues.

In terms of public finances, the National Monetary and Financial Committee noted that the management of the state budget was characterized by a diminution of public resources, combined with prudent expenditure growth.

In terms of total revenue and grants, they decreased by 4.6% at the end of March 2015 compared to the same period a year earlier, while total expenditure increased by 7.8% and the overall balance, cash basis, was deficient and basic overall balance excluding external financing which was positive.

The monetary situation was marked by an increase in money supply (8.9%), a decline in net foreign assets (1.8%) as well as an increase in domestic credit (15.1%), during the period from March 2014 to March 2015

Regarding the balance of Cameroon's account position of operations, it dropped by 39.1% and thus reduced the external coverage rate of the currency at 89.50%.