Cameroon: Staff Report for the 2014 Article IV Consultation
IMF Staff Country Reports, July 17, 2014
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- Cameroon: Staff Report for the 2014 Article IV Consultation
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Bibliographic details
- Published: July 17, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498342636.002
Context and macroeconomic assessment
- Macroeconomic outlook and risks have deteriorated slightly since the Article IV consultation in 2013.
- Economic activity has remained strong and inflation subdued.
- Fiscal and balance-sheet pressures:
- The fiscal position has worsened.
- Public debt has been rising at a less sustainable pace.
- Government deposits have dwindled.
- Payment delays have continued.
- Long-term growth concern:
- The anticipated growth path may not suffice to reach upper-middle-income country status by 2035.
Focus of the consultation and risks
- Overarching policy issue: how to set Cameroon on a higher growth path while mitigating low but growing risks to macroeconomic stability.
- Main exogenous risk: spillovers from regional insecurity.
- Main endogenous risks: rising contingent liabilities and credit concentration.
- Past policy advice remains relevant.
Key findings and projections (selected)
- Continued strong real economic activity and subdued inflation (no numeric growth rates provided on the page).
- Deterioration in fiscal sustainability indicators and erosion of fiscal buffers (government deposits, payment delays).
- Banking sector stress: presence of three small distressed banks requiring resolution.
- Implication for poverty and development goals: current growth path unlikely to achieve upper-middle-income country status by 2035.
Key policy recommendations
- Public financial management and fiscal policy:
- Strengthen cash management and expenditure controls to prevent a further accumulation of payment deferrals.
- Close the financing gap in 2014, and adopt a downward path for the non-oil primary deficit to rebuild fiscal space and preserve macroeconomic stability.
- Improve non-oil revenue by broadening the tax base and streamlining tax exemptions.
- Reprioritize public expenditure by reducing fuel subsidies gradually; provide targeted compensation measures for the most vulnerable.
- Increase the selectivity of investment projects and adopt a rigorous screening of the financing terms to ensure debt sustainability.
- Financial sector and supervision:
- Pursue the resolution of three small distressed banks.
- Support the strengthening of regional bank and microfinance supervision.
- Growth and inclusion:
- Promote higher and more inclusive growth through better targeted educational and social spending, a propitious business climate, and deeper regional integration.
Publication and metadata (as presented)
- Title: Cameroon: Staff Report for the 2014 Article IV Consultation
- Date: July 17, 2014
- Pages: 71
- Volume: 2014
- Issue: 212
- Series: Country Report No. 2014/212
- DOI: https://doi.org/10.5089/9781498342636.002
- Stock No: 1CMREA2014001
- ISBN: 9781498342636
- ISSN: 1934-7685
- Subjects: Energy subsidies, Expenditure, External debt, Public debt, Public financial management (PFM)
- Keywords: CR, Energy subsidies, executive board assessment, financing gap, GDP, GDP deflator, Global, ISCR, oil revenue, private sector, real GDP, revenue policy, right, Sub-Saharan Africa
- Additional note: Also available in French
- Auxiliary fact: Our eLibrary offers over 25,000 IMF publications in multiple formats.
Source: IMF Staff Country Report — Cameroon: Staff Report for the 2014 Article IV Consultation (Country Report No. 2014/212), July 17, 2014.
Content in this bundle
- Cameroon: 2014 Article IV consultation, IMF Country Report No. 14/212, June 13, 2014
- Cameroun: Consultations de 2014 au titre de l'Article IV; Rapport du FMI 14/212; Le 13 juin 2014