The International Monetary Fund (IMF) has entered into a service-level agreement with Cameroon for the fourth review of the program supported by the Extended Credit Facility and Extended Credit Facility. The information was made public on May 19, through a press release from this Bretton Woods institution. This conclusion will allow Cameroon to benefit from financing of 55.2 million SDRs, or about 73.8 million dollars (about 44.6 billion FCFA), once the review is formally concluded by the Board of Directors. administration of the IMF at the end of June 2023.
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It should be noted in passing that between May 4 and May 17, a team from the IMF, led by Cemile Sanack, stayed in Yaoundé to discuss the authorities’ progress and political priorities within the framework of this fourth review of the economic and three-year financial backed by FEC and MEDC. It emerges from the series of hearings carried out by the IMF delegation that the Cameroonian economy bends but does not break in the face of external and internal difficulties. ” After an early recovery from the COVID-19 shock, Cameroon faces new risks related to the external environment, including difficult global financial conditions and increased volatility in oil prices. », Specifies the press release from the IMF.
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However, this correspondence points out, the economic recovery has continued and growth is estimated at 3.7% in 2022. Admittedly, headline inflation reached 7.3% year-on-year at the end of 2022 against 3.5% at same as the previous year, the overall budget deficit, on the other hand, narrowed to 1.1% of GDP in 2022, from 3% in 2021, while the non-oil primary deficit fell to 4% of GDP in 2022 against 3.9% in 2021.
Perspectives favorables
In terms of performance, one of the two inconclusive objectives during the third review, namely the non-oil primary deficit, has been achieved, we learn, even if a substantial part of the subsidies for petroleum products for 2022, which was validated only in 2023, will be incorporated into the amending finance law of 2023.
Regarding the medium-term outlook, they remain favorable, according to the IMF, provided that the reforms continue and that the external environment is favorable. Economic growth is expected to increase slightly to 4%, while inflation is expected to moderate from 7.3% year-on-year at end-2022 to 5.9% at end-2023. The authorities are preparing an amending budget law for 2023 and expressed their continued commitment to maintaining macroeconomic stability and further reducing the overall fiscal deficit to 1% of GDP and the non-oil primary fiscal deficit to 2.4% of GDP in 2023.
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The Economic and Financial Program was approved on July 29, 2021, by the IMF Board of Directors for a total of 483 million DST, or approximately 689.5 million dollars (approximately 4.16 billion CFA francs).
