Yaoundé: Unlocking the Value of Forests and Natural Capital. The report provides a comprehensive analysis of the nation’s recent economic developments, medium-term outlook, and the critical role of wealth accounting in assessing the country’s economic performance. The report places a special emphasis on the importance of sustainable forests and natural resources management as drivers of inclusive and resilient development.
According to African Press Organization, Cameroon’s GDP grew by 3.5% in 2024, up from 3.2% in 2023, driven by rising cocoa prices, enhanced cotton yields, and improved power supply. Average inflation declined sharply from 7.4% to 4.5% between 2023 and 2024, thanks to tighter monetary policy, price controls, and reduced import inflation. The current account deficit narrowed from 4.1% to 3.4% of GDP, mainly due to the cocoa price surge. However, the overall fiscal deficit widened to 1.5% of GDP, compared to 0.7% of GDP in 2023, due to a slippage in current expenditures and weaker-than-expected revenues. Public debt rose slightly from 46.1% to 46.8% of GDP, with most of this increase in the form of external debt.
The medium-term outlook is moderately positive, with an anticipated average real GDP growth of 3.9% from 2025 to 2028, supported by improved power generation and increased public investment, particularly in the construction sector. Average inflation is expected to decline further, reaching the 3% CEMAC convergence criteria by 2027. However, the current account deficit is expected to increase to around 4.0% of GDP over the medium term, due to declining oil production and prices, mixed results from government industrial policies, and increased inputs as a result of higher public and private investment. While Cameroon’s external and overall public debt are expected to remain sustainable, the country faces a high risk of debt distress due to liquidity issues.
The report underscores that to achieve its goal of becoming an emerging economy by 2035, Cameroon must diversify beyond primary commodities. With one of Africa’s most unique ecosystems, a competitive tourism sector could become a key driver of growth and employment, leveraging natural capital that few other countries can match.