Fitch Solutions forecasts a 4.2% growth for Cameroon’s economy in 2025, up from 3.7% in 2024, driven by consumer spending and cocoa exports. Public sector spending may be constrained due to the presidential election, leading to a slight budget deficit increase. The government’s focus on expenditure control could limit public procurement in 2025.
Fitch Solutions has projected that Cameroon’s economy will grow by 4.2% in 2025, improving from a growth rate of 3.7% in 2024. This optimistic forecast is attributed to enhanced consumer spending and a robust cocoa sector. Analysts from Fitch Solutions emphasize that easing inflationary pressures will lead to an increase in household consumption, complemented by significant infrastructure projects and favorable cocoa export conditions.
Despite the positive growth projections, public sector spending is expected to be constrained due to the forthcoming presidential election. The report anticipates a slight increase in the budget deficit to 0.8% of GDP in 2025, reflecting election-related expenditures, rising from a surplus of 0.1% in 2024. Consequently, public consumption is projected to remain limited as the government aims to control expenditures, potentially affecting public procurement of goods and services in 2025.
In summary, Cameroon’s economic outlook remains positive with expected growth driven by consumer spending and the cocoa industry. However, anticipated constraints on public sector spending due to election-related expenses may moderate this growth. The focus on controlling government expenditures may limit public procurement, potentially impacting broader economic dynamics in 2025.
Original Source: www.businessincameroon.com
