Yaoundé - 15 August 2022 -
Public management

Cemac: Budget deficit worsens to XAF495 bln in Q1-2020

Cemac: Budget deficit worsens to XAF495 bln in Q1-2020
  • Comments   -   Wednesday, 07 October 2020 13:35

(Business in Cameroon) - The six CEMAC countries recorded a budget deficit of XAF495 billion in Q1-2020, according to a note on public finances recently published by the central bank (BEAC).

The budget deficit (a closely monitored indicator in the CEMAC region) has thus worsened considerably compared to the XAF15 billion budget surplus recorded in Q1-2019. This is due to the coronavirus pandemic, which affected the prices and volume of commodities exported by the countries.

The central bank explains that during the reference period, CEMAC countries had fulfilled their commitments to the IMF while maintaining an expansionary fiscal policy to support investment and growth.

It is not certain whether CEMAC countries fulfilled their commitment to the IMF since the advent of the coronavirus in mid-March 2020. Indeed, from that period, they had to take numerous measures to prevent the spread of this pandemic. In that regard, at the beginning of the second quarter, they amended their budgets and redirected their expenses.

For instance, according to the commitments towards the IMF, Cameroon should cap this year’s budget deficit to 1.5% of GDP. However, the budget amendment (signed on June 3, 2020, by President Paul Biya and approved by the parliament) projects the deficit to be around 4.5% of GDP (XAF986.6 billion).

Brice R. Mbodiam

Recent fluctuations between the euro and the U.S. dollar have increased Cameroon's debt by CFA420 billion (+11.2%) between June 2021 and June 2022. Data...
Guinean Bange Bank is preparing its listing on the regional stock exchange Bvmac. Louis Banga, MD of the stock market, met on August 9 in this regard with...
The Bank of Central African States Beac forecasts the brewing industry in Cameroon to experience a sharp decline in Q3 2022. In its bulletin, the...
The Cameroonian government announced it will approve CFA780 billion in fuel subsidy to keep pump prices unchanged in this harsh period marked by rising...

Mags frontpage

Business in Cameroon n110: April 2022

Covid-19, war in Europe: Some Cameroonian firms will suffer

Albert Zeufack: “Today, the most important market is in Asia”

Investir au Cameroun n120: Avril 2022

Covid-19, guerre en Europe : des entreprises camerounaises vont souffrir

Albert Zeufack: « Le marché le plus important aujourd’hui, c’est l’Asie »