The permanent Secretariat of the CEMAC Economic and Financial Reforms Programme –PREF CEMAC has revealed that the coronavirus would have a negative impact on Cameroon’s economy. The organ of the CEMAC Commission has elaborated two scenarios based on macro-economic data.
The first is that, the crisis would be transitory and quickly controlled, resulting in particular in a slight increase in the oil price to $39.1 per barrel (transitory scenario). The second scenario envisages a rapid and general spread of the crisis with, among other things. This scenario will lower the average price of oil to $20 per barrel in 2020.
Economic growth in Cameroon will slightly fall moderately by 0.2% in 2020. For the remaining countries, the decrease will be respectively 0.1% for Congo, 0.5% for Gabon, 1.3% in Equatorial Guinea, 0.4% in Chad and 0% in CAR.
But should the situation get worse, Cameroon will record a whopping 3% drop in its growth. This is slightly better compared with the decrease in the growth of other countries of that community (-7.9% in CAR, -7.3% in Congo, -4.8% in Gabon, -8.9% in Equatorial Guinea and -4.9% in Chad).
The Commission concludes that, “if the CEMAC countries do not effectively combat the Covid-19 pandemic to limit its economic and financial impacts, the macroeconomic situation would become unsustainable.”
To mitigate the shocks, building resilience is key. This includes the implementation of the Covid 19 Response plan adopted earlier this month latest May 2020. Also, governments should prioritize spending and non-essential funds should be targeted towards beefing health services.
Mitigating the effects of the pandemic to align public finance management with updated and realistic budget revenue forecasts…” It also includes the elaboration of support measures for companies hit by the crisis and discussions with the main backers to reschedule the repayment of external debts. CEMAC member states have also been advised to renew their programmes with the International Monetary Fund IMF. They have also been told to elaborate support measures for companies hit by the crisis and discussions with the main backers to reschedule the repayment of external debts. Authorities are also advised to offer incentives to banks so that they will restructure companies’ debt repayment schedules. 291bnRG]�|t��
