The Monetary Policy Committee of the Bank of Central African States (BEAC) says the economies of the sub region could grow by 5.7 per cent in 2014, down from the initially projected 6.1 per cent. Meeting in Yaounde yesterday October 28, 2014 during the fourth quarter session of the committee, members said looking at the macro-economic situation across the globe which is not at its best, there was need to revise that of the CEMAC sub region.
Speaking to journalists in a press briefing after the committee meeting, the Governor of BEAC, Lucas Abaga Nchama, who is Chairman of the Policy Committee, described the economic situation in developed countries as “mediocre” and noted that since CEMAC countries mostly export raw produce to this countries and whose demand is hoped to plummet with the crisis, the initially projected economic growth rate in the sub region would change.
Another element in support of the revised growth rate is the price of petroleum products in the international market which is not at their best. The communiqué that sanctioned the Yaounde session stated that the petroleum sector is expected to grow by 2.5 per cent this year and the non-petroleum sector by 6.7 per cent. Even this growth is in reduction from initial plans as according to a news release after the committee’s second ordinary session for the year in Malabo, Equatorial Guinea on July 8, 2014, where the petroleum sector was expected to grow by 3.6 per cent and the non-petroleum sector 7.1 per cent in 2014.
It also emerged from the committee session that inflation rate in the sub region could rise to about 3.7 per cent owing to crisis notably in the Central African Republic and that the rate of cash flow could further degenerate to represent -9.5 per cent of Gross Domestic Product. He attributed the degradation to incessant importation especially of equipment for giant projects ongoing within CEMAC in view of the countries’ emergence vision.
Mr Lucas Abaga Nchama during yesterday’s session reiterated the bank’s commitment to accompany member countries attain growth objectives reason why it is unwavering with development-friendly reforms. He however implored all actors to fully assume their responsibilities, work to improve the business climate so that respective countries could attain a sustainable double-digit growth needed to attain emergence that is the dream of all now.
*Godlove Bainkong – Cameroun Tribune