(Business in Cameroon) - The International Monetary Fund (IMF) has just published a note on its annual talks on CEMAC common policies in support of member countries' reform programmes.
“The medium-term outlook foresees further improvement in regional reserves, assuming CEMAC countries remain committed to their program objectives, and new programs with Equatorial Guinea and CAR start soon. Overall, growth is projected to increase to 3.5 percent in 2020, mainly driven by the non-oil sector which would be supported by the implementation of the governments’ strategies to clear arrears,” the IMF writes.
The institution adds that growth in the zone's oil sector would remain stable in 2020 before slowing in the following years in line with past trends. Beyond 2020, non-oil sector growth is expected to accelerate gradually, as reforms to improve governance and the business climate are assumed to be slow to be put in place. Inflation is expected to remain close to 2.5% in the medium term, below the regional convergence criterion, as monetary policy would rightly remain restrictive.
The institution states that overall, regional growth for 2019 has been slightly above 2.5%, driven by an acceleration in the oil sector.