Country Report Cameroon January 2011

Economic performance: Economic growth is below government expectations

Recently released statistics from the Groupement inter-patronal du Cameroun (Gicam), Cameroon's main private-sector association, indicate that GDP growth in 2010 fell below the government's projections. According to Gicam the economy grew by 2.6% in 2010; the IMF also estimated economic growth of 2.6% in its November regional overview. This is below the forecast that the government used in the 2010 budget, of 3.9%, and its forecast after the first quarter, of 3.7% (April 2010, Economic performance). Moreover, the latest estimates are well below the government's objective of 5.5% average growth between 2010 and 2020.

Both the chairman of Gicam and the finance minister, Lazare Essimi Menye, largely blamed the poor economic performance on the fall in oil production. Mr Menye also highlighted gaps in domestic spending due to the payment of arrears (September 2010, Economic policy), while the Gicam chairman emphasised the country's increasing dependence on agricultural imports and the poor business environment, particularly lamenting procedures for cross-border trade and lengthy tax procedures (November & December 2010, Economic performance). These poor growth figures will add even greater urgency to the government's investment plans.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
IMPRINT