IMF Staff Country Reports

Cameroon: Selected Issues

August 13, 2018

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Cameroon: Selected Issues, (USA: International Monetary Fund, 2018) accessed December 10, 2024

Also available in: français

Summary

This Selected Issues paper aims at providing an empirical underpinning to fiscal policy reforms implemented by the authorities by estimating the size of fiscal multipliers in Cameroon, using a novel long quarterly data set and looking separately at the impact of changes in revenue, and government consumption and investment. The impact of government spending and taxes depends on country characteristics and the stage of the business cycle. The analysis shows that revenue and capital expenditure multipliers in Cameroon are small and comparable to those of other sub-Saharan African and low-income countries. The revenue multiplier is close to nil which implies that revenue-based fiscal consolidation would be less harmful to growth in the medium term. Compared to its peers in sub-Saharan Africa, Cameroon’s revenue multiplier is smaller as is its tax burden relative to the regional average. Conversely, government expenditure can more significantly affect output in the medium term, although the consumption multiplier is unexpectedly much higher than the investment one.

Subject: Banking, Financial inclusion, Financial markets, Gender, Gender inequality, Income inequality, National accounts, Personal income, Poverty, Women

Keywords: Bank, Cameroon, Capital expenditure, CR, Education gender gap, Financial inclusion, GDP, Gender gaps in Cameroon, Gender inequality, Gender inequality index, Global, IMF staff, IMF staff calculation, Income inequality, ISCR, Personal income, Policy recommendation, Policy simulation, Poverty headcount, Poverty impact, Poverty reduction goal, Sub-Saharan Africa, West Africa, Women

Publication Details

  • Pages:

    63

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

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  • Series:

    Country Report No. 2018/256

  • Stock No:

    1CMREA2018003

  • ISBN:

    9781484373378

  • ISSN:

    1934-7685