According to a recent analysis note by the International Monetary Fund, projections which put gross domestic product growth at around 4% should rather decrease by -1.2% during this year.
Due to the Coronavirus pandemic which continues to affect the world’s economies, economic growth signals remain red for Cameroon which will enter recession, according to a recent analysis note by the International Monetary Fund (IMF). The Gross Domestic Product (GDP) will suffer a relative decline of around -1.2% in 2020, while growth was projected before the pandemic around 4%.
“GDP growth is expected to fall sharply to -1.2%, about 5 points lower than the pre-pandemic projection. The pandemic has resulted in a substantial deterioration of the global economic environment, reflecting a combination of global supply and demand shocks. In addition to the significant fallout expected from the external shock on Cameroon, the country is facing a rapid increase in the number of people infected, ” the IMF says.
According to data from the Ministry of Finance, the COVID-19 pandemic will orchestrate huge losses in state revenues, estimated at FCFA 768 billion in 2020, representing tax, customs revenue or import taxes hydrocarbons. However, this programmed decline in public revenue “will be partially offset by the * exceptional support from development partners *, in connection with the global health crisis, as well as the classic financial support expected from the economic and financial program with the IMF”,
