Yaoundé, July 15, 2024 – The World Bank Group has released the 2025 Cameroon Economic Update titled "Cameroon’s Green Gold: Unlocking the Value of Forests and Natural Capital." This report offers an analysis of Cameroon's recent economic trends, medium-term prospects, and the significance of wealth accounting in evaluating economic performance. It highlights sustainable forest and natural resource management as crucial for inclusive development.
The report indicates that Cameroon's GDP increased by 3.5% in 2024 from 3.2% in 2023, driven by rising cocoa prices, better cotton yields, and improved power supply. Inflation decreased significantly from 7.4% to 4.5%, aided by tighter monetary policy and reduced import inflation. The current account deficit narrowed to 3.4% of GDP due to the cocoa price surge. However, the fiscal deficit widened to 1.5% of GDP because of higher expenditures and lower revenues, with public debt slightly increasing.
Looking ahead, real GDP growth is expected to average 3.9% from 2025 to 2028, supported by better power generation and public investment in construction. Inflation is projected to decline further, meeting the CEMAC convergence criteria by 2027. Despite a sustainable debt outlook, Cameroon faces a high risk of debt distress due to liquidity issues.
“Cameroon’s economy has demonstrated resilience amidst external shocks, yet multiple structural weaknesses – particularly infrastructure gaps – impede its potential,” said Robert Utz, World Bank Lead Country Economist and one of the report’s authors. “A bold fiscal reform agenda is imperative to bridge those gaps and boost economy-wide productivity.”
The report introduces national wealth accounting as a tool for policymakers to understand economic capacity for future income generation and development sustainability. While total national wealth grew from $311 billion in 1995 to $553 billion in 2020, per capita wealth declined by 11%. Adjusted net savings were moderately negative between 2010 and 2020, indicating faster depletion than asset accumulation.
“To minimize the environmental impact of growth and preserve natural wealth, Cameroon could prioritize its high-value, vulnerable ecosystems and transition to a forest-based service economy," said Cheick F. Kanté, World Bank Division Director for Cameroon.
To become an emerging economy by 2035, Cameroon must diversify beyond primary commodities with its unique ecosystems potentially driving growth through tourism.