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, June 28, 2024

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Presents a report on common policies in support of member countries reform programs in the Central African Economic and Monetary Community (CEMAC).
The CEMAC’s economy lost some momentum in 2023 and the external position deteriorated somewhat, while inflation cooled but remained high.
Updated statistics revealed a much more deteriorated fiscal situation than originally estimated.
With current policies unchanged, fiscal and external imbalances are set to widen in the medium term, threatening to reverse reserve accumulation and add to financial stability risks.
Decisive corrective policies are warranted to address sustained fiscal slippages and return to fiscal prudence.

Economic momentum: Loss of momentum in 2023.
External position: Deteriorated somewhat during 2023.
Inflation: Cooled but remained high (no numeric inflation rate provided in the source).
Fiscal situation: Updated statistics indicate a much more deteriorated fiscal situation than originally estimated.
Medium-term outlook under unchanged policies:
- Widening fiscal imbalances.
- Widening external imbalances.
- Risk of reversing reserve accumulation.
- Increased financial stability risks.

Implement decisive corrective fiscal policies to address sustained fiscal slippages and restore fiscal prudence.
Strengthen anti-money laundering and combating the financing of terrorism (AML/CFT).
Improve governance and regulatory policies.
Advance measures to boost potential output, including:
- Improving human capital.
- Improving the business climate.
- Strengthening the rule of law.
- Promoting financial inclusion.
- Developing regional infrastructure.

Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Arrears, Crime, External debt, Financial sector policy and analysis, Financial sector stability, Fiscal policy, Fiscal stance, Public debt.
Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Arrears, CEMAC authorities, CEMAC member country, Financial sector stability, Fiscal stance, Global, IMF's transparency policy, policy rate hike, Policy recommendation.

International Monetary Fund. African Dept. Staff Report; and Statement by the Executive Director. June 28, 2024.

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