Fitch Solutions projects Cameroon’s economy will grow 4.2% in 2025, boosted by consumer spending, cocoa sector advancements, and infrastructure projects, despite public spending being limited due to upcoming election expenses.
According to Fitch Solutions, Cameroon’s economy is projected to experience a growth of 4.2% in 2025, an increase from the anticipated 3.7% in 2024. This optimistic forecast is attributed to several key factors, including a rise in consumer spending and a resurgence in the cocoa sector. Analysts emphasize that as inflationary pressures subside, household consumption is likely to improve, alongside extensive infrastructure initiatives and robust cocoa export prospects.
It should be noted that public sector spending may be more restrained in the lead-up to the presidential election. Fitch’s report indicates, “While we anticipate a slight widening of the budget deficit in 2025—to 0.8% of GDP from a surplus of 0.1% in 2024—due to election-related expenses, public consumption should remain limited.” The government aims to control expenditures, which may restrict public procurement of goods and services in the upcoming year.
In summary, Fitch Solutions forecasts a growth of 4.2% for Cameroon’s economy in 2025, driven by increased consumer spending, cocoa sector improvements, and major infrastructure projects. However, anticipated budget deficits and restrained public sector spending due to the presidential election may impact overall fiscal dynamics, underscoring the government’s focus on managing expenditures.
Original Source: www.businessincameroon.com
