Central African Economic and Monetary Community: Common Policies in Support of Member Countries Reform Programs-Staff Report; and Statement by the Executive Director
IMF Staff Country Reports, July 7, 2021
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- Central African Economic and Monetary Community: Common Policies in Support of Member Countries Reform Programs-Staff Report; and Statement by the Executive Director
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Bibliographic details
- Published: July 7, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513577579.002
Context and risks
- The pandemic may have a long-lasting impact on CEMAC’s growth potential, which is already curtailed by structural, governance, and transparency issues.
- The policy response from national and regional authorities in 2020 helped mitigate the economic fallout.
- CEMAC experienced a severe recession in 2020; fiscal and external deficits increased, and public debt rose with some countries having debt sustainability issues.
- The region faces an increasing dilemma between internal and external stability, as external reserves fell sharply between mid-2020 and March 2021.
- The outlook is highly uncertain and contingent on the evolution of the pandemic and the vaccination program.
- Other significant risks identified:
- Delayed implementation of the ongoing or possible new Fund-supported programs.
- Uncertainties in filling large external financing needs.
- Oil prices.
- A possible deterioration in the security situation.
Growth and external financing projections
- A moderate recovery in economic growth is expected from 2021.
- Total external financing is projected at €4.8 billion over 2021–23; supported by this lower-than-previously-projected financing, international reserves build-up would be slower than pre-pandemic.
Policy implications and priorities
- Strengthen pandemic response and vaccination rollout to reduce uncertainty around the recovery.
- Accelerate implementation of Fund-supported programs to stabilize fiscal and external positions.
- Address structural, governance, and transparency weaknesses to support medium-term growth potential.
- Mobilize and secure external financing to meet large financing needs and rebuild international reserves.
- Monitor oil price developments and regional security risks that could materially affect the outlook.
Key thematic tags (as provided)
- COVID-19
- External position
- Fiscal policy
- Fiscal stance
- Health
- International organization
- Monetary base
- Monetary policy
- Money
- Public debt
International Monetary Fund. Central African Economic and Monetary Community: Common Policies in Support of Member Countries Reform Programs-Staff Report; and Statement by the Executive Director. July 7, 2021.
Content in this bundle
- 1. Selected Social Indicators