Cameroon’s Economic Growth Projected at 4.2% for 2025 Driven by Cocoa and Infrastructure

Fitch Solutions forecasts 4.2% growth for Cameroon’s economy in 2025, up from 3.7% in 2024, driven by increased consumer spending and a robust cocoa sector. Public spending is expected to be constrained due to the presidential election, leading to a budget deficit of 0.8% of GDP.

According to Fitch Solutions, Cameroon’s economy is projected to experience growth of 4.2% in 2025, an increase from 3.7% in 2024. This optimistic forecast is attributed to several key factors, notably enhanced consumer spending and a revitalized cocoa sector. Analysts from Fitch Solutions have observed that easing inflationary pressures are likely to spur household consumption, complemented by significant infrastructure developments and favorable cocoa export conditions.

Despite this positive outlook, public sector expenditure is anticipated to be more constrained due to the presidential election scheduled for 2025. The report highlights a projected shift from a budget surplus of 0.1% of GDP in 2024 to a budget deficit of 0.8% in 2025, primarily driven by election-related costs. Consequently, government efforts to maintain fiscal discipline are expected to restrict public spending on goods and services during this period.

In summary, Fitch Solutions forecasts a 4.2% growth for Cameroon’s economy in 2025, mainly propelled by increased consumer spending and cocoa sector improvements. However, anticipated election-related expenditures may lead to a budget deficit, with the government aiming to manage public spending cautiously.

Original Source: www.businessincameroon.com