Fitch Solutions forecasts that Cameroon’s economy will grow by 4.2% in 2025, driven by increased consumer spending and the cocoa sector. Public sector spending is expected to be restrained due to the presidential election, leading to a projected widening of the budget deficit to 0.8% of GDP. This combination highlights a complex economic landscape ahead for Cameroon.
According to Fitch Solutions, Cameroon’s economy is projected to grow by 4.2% in 2025, an increase from 3.7% in 2024. This optimistic outlook is supported by factors such as heightened consumer spending and a resurgence in the cocoa sector. Analysts from Fitch Solutions highlight a significant rise in household consumption as inflationary pressures ease, complemented by substantial infrastructure development and promising cocoa export prospects.
Despite this growth, public sector spending is anticipated to be limited, primarily due to the upcoming presidential election. The report indicates a slight widening of the budget deficit in 2025, expected to reach 0.8% of GDP from a surplus of 0.1% in 2024, attributed to election-related expenditures. The government is prioritizing expenditure control, which is likely to restrict public procurement of goods and services during the year.
Cameroon’s economic forecast indicates a growth rate of 4.2% in 2025, driven by consumer spending and the cocoa industry. However, anticipated constraints on public sector spending due to the presidential election will influence budget dynamics. The government’s emphasis on expenditure control may further limit public sector activities in the economy during this period.
Original Source: www.businessincameroon.com
