logoBC
Yaoundé - 21 January 2022 -
Economy

CEMAC: 2022 economic growth projected to 3.7%, up 1.7% YoY

CEMAC: 2022 economic growth projected to 3.7%, up 1.7% YoY
  • Comments   -   Tuesday, 28 December 2021 18:03

(Business in Cameroon) - CEMAC countries’ 2022 economic growth could become stronger than the 1.9% recorded in 2021 after the 1.7% recession caused by the coronavirus pandemic in 2020. Indeed, on December 20, 2021, the Monetary Policy Committee of the Bank of Central African States (BEAC) - the regional central bank - held its fourth regular meeting for the 2021 financial year via videoconference to assess the regional economic situation. 

The committee forecasted a 3.7% growth for 2022, representing a 1.7% year-over-year growth. For the committee, this improvement will notably be spurred by an upturn in non-oil activities. The upturn will continue till 2024 amid the expected decline in global uncertainties thanks to the Covid-19 combating efforts combined with the results of reforms initiated in the framework of the Pref-Cemac (an economic and financial reform program) and the second-generation programs with the IMF.

The expected growth will come with rising inflation, the monetary policy committee also forecasts. It projects a 2.2% inflation rate for 2022. Although that rate is below the 3% threshold admitted in the regional convergence criteria, it is higher than the 1.7% recorded in 2021 and slightly closer to the 2.6% recorded in 2020.

According to the BEAC, that inflation will mainly be “imported” as the result of rising prices in international markets. 

At the same time, the central bank expects a slight increase in the import coverage ratio to 3.9 months against 3.82 and 3.72 respectively in 2020 and 2021. The projected improvement could be due to the planned applicability of the foreign exchange regulation for extractive industries (the regulation has been applicable for other industries since 2019) in the CEMAC region. That regulation requires economic operators to repatriate the proceeds from their exports outside the CEMAC region. 

Brice R. Mbodiam    

cameroon-to-disburse-xaf3-7-bln-to-settle-part-of-pamol-plantations-salary-arrears-and-social-debts
The government plans to release XAF3.7 billion to help state-owned company Pamol Plantations Plc settle part of the debt it owes employees.  Indeed,...
cameroon-new-agribusiness-firm-cfc-increases-capital-4-folds-to-xaf10-bln
On January 12, 2022, Compagnie fermière camerounaise (CFC), the new subsidiary inaugurated (on November 5, 2021) by leading brewing group SABC increased...
promote-2022-afriland-first-bank-commits-to-sponsoring-20-smes
On January 19, 2022, Inter-progress Foundation, the organizer of the Yaoundé́ International Exhibition for SMEs and Partnership (PROMOTE), signed a...
sabc-group-inaugurates-new-research-and-development-laboratory
Société Anonyme des brasseries du Cameroun (SABC), a subsidiary of the French group Castel, inaugurated its new research and development laboratory in...

Mags frontpage


Business in Cameroon n106-107: December 2021-January 2022

Nine projects and innovations that demonstrate Cameroonians’ genius


This is how Gozem plans to revolutionize the transport sector in Cameroon


Investir au Cameroun n116-117: Decembre 2021-Janvier 2022

La preuve par 9 du génie camerounais


Comment Gozem veut révolutionner le transport urbain au Cameroun