BEAC announces slowdown in economic activities

The Bank of Central African States of (BEAC)has revealed a slowdown in economic activities within the Economic and Monetary Community of Central Africa (CEMAC), APA reports here Tuesday at the end of the first annual session of the Monetary Policy
Committee (CPM).

Based on 2015 economic, monetary and financial updated data, it appears that “growth has decreased by 2.3 per cent, against 4.8 per cent in 2014, inflationary pressures has declined with a 2.3 percent inflation rate, against 3.2 per cent, an increase of the budget deficit to the tune of 4.1 per cent of the GDP, and a current account deficit of 12.0 per cent of the GDP.”

For the CPM, “the economic outlook for the sub-region indicates for 2016, a continuation of this trend, due to the persistence of the collateral effects of the decrease in world oil prices, which continue to deteriorate public finances.”

A factor, to which the problems of insecurity, including atrocities and attacks perpetrated by the Nigerian terrorist sect Boko Haram in Cameroon and Chad, should be added.”

In this environment, the forecasts for 2016 highlight “a further slowdown in economic activity to the tune of 2 per cent, a slight increase in inflationary pressures by 2.7 per cent, a deterioration of the budget balance -7.1 per cent , a widening of the deficit of the current account by 14.2 per cent of the GDP.”

Taking into account these analyzes, and after considering various factors influencing the financial monetary stability, the CPM has decided to maintain BEAC’s key rate at 2.5 per cent.