Economic growth in the CEMAC zone of Central Africa is expected to reach 3.4% in 2022 and gradually rise to more than 3.5% in the medium term, the International Monetary Fund (IMF) said on Thursday.
The Central African Economic and Monetary Community (CEMAC) includes Cameroon, the Central African Republic, Chad, the Republic of the Congo, Gabon, and Equatorial Guinea. Most are oil-producing nations that depend on oil and gas exports for income.
“The outlook for 2023 is broadly positive, driven by high oil prices, the lifting of COVID-19 containment measures, and the continued prudent management of oil windfalls,” the IMF said in a statement after annual discussions with member states.
Public debt is expected to decline to around 40% of GDP by 2026, from 53% of GDP in 2022, it said.
Inflation is projected to slow to 3.3% in 2023 and return to below 3% from 2024 if monetary policy remains tight, the fund added.
The Bank of Central African States (BEAC) raised its key interest rate twice this year to 4.5%.
“Directors welcomed the BEAC’s monetary policy tightening to date and encouraged the BEAC to tighten further if it sees evidence of rising inflation, deviations from the target reserve path, or fiscal slippage,” the IMF said.
