Cameroon’s economy is expected to grow by 4.2% in 2025, driven by stronger consumer spending and the cocoa sector, according to Fitch Solutions. Public sector spending is likely to be restrained due to election expenses, leading to a budget deficit of 0.8% of GDP.
Fitch Solutions, a division of Fitch Group, forecasts that Cameroon’s economy will experience a growth of 4.2% in 2025, rising from 3.7% in 2024. This optimistic outlook is supported by increased consumer spending and developments in the cocoa sector. Analysts highlight the improvement in household consumption as inflationary pressures decrease and significant infrastructure projects are undertaken, along with promising cocoa export prospects.
Despite this growth, public sector spending will likely be constrained due to the impending presidential elections. The report anticipates a modest widening of the budget deficit in 2025 to 0.8% of GDP, a shift from a surplus of 0.1% in 2024, driven by election-related expenditures. The government aims to maintain strict expenditure controls, which will result in limited public procurement of goods and services next year.
In summary, Cameroon’s economy is projected to grow by 4.2% in 2025, bolstered by enhanced consumer spending and advancements in the cocoa sector. However, public spending will face constraints due to election-related costs, leading to a widening budget deficit. The government’s focus on controlling expenditures will impact public procurement, shaping economic activities in 2025.
Original Source: www.businessincameroon.com
