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Cameroon suffers trade decline due to drop in world prices -World Bank

Cameroon ranks among a group of African countries heavily affected by the decline in world prices of raw materials; mainly crude oil and unprocessed agricultural products. Records reveal that deterioration in terms of trade is about 10% for its national economy, according to the World Bank.

The latest World Bank forecasts published Monday in Washington, sub-Saharan Africa's growth indicated a decline of about 4.0% compared with 2.9% for the global economy in 2015, after reaching 4.5% in 2014 and 4.2 percent in 2013.

A slight rebound to 4.5% is planned in 2016 and 4.7% in 2017, according to the findings of the Africa's Pulse report unveiled on this occasion.

"According to projections, by 2015 growth will be less than the average of 4.4% realized in Africa over the past two decades. It would however, be around 4.7% excluding South Africa. These figures are far from the peak of 6.4% growth recorded in the years 2002 to 2008 ', stressed the press release.

Worldbank

For the World Bank, the fact that the black continent is net exporter of raw materials, including oil, gold and natural gas represent more than 90% of all the 8 major exporting countries of black gold exports and 30% of their GDP, increasing its vulnerability to exogenous shocks, i.e. those resulting from the decline in the prices of these products.

Thus, "the recent drop of oil prices has degraded the terms of trade of most of the countries in the region, especially as it extends to other raw materials", said the institution, indicating that the 36 countries listed in this analysis are home to 80% of the continent's population and account for 70% of economic activity.

Cameroon is one, with a rate of deterioration in its terms of trade estimated at about 10%, due primarily to the decline in the price of cocoa and oil with the impact on revenues respectively 7 and 4%, according to the team report Africa's Pulse, led by Punam Chuhan - Pole and Francisco H.G.Ferreira, interviewed during an Exchange by teleconference by Xinhua.

Facing the atrocities of the Nigerian terrorist group Boko Haram in the far North region, Central African country suffers also of deadly incursions by armed gangs.

Added to measures to prevent the epidemic of Ebola, this climate of insecurity has resulted in an increase of 22.7% of the public expenditure of 1,000 billion francs CFA ($2 billion) budget from 2014, established in 3. 312 billion ($6.6 billion), according to a previous study by the World Bank.

Certainly, in the opinion of the Minister of finance, Alamine Ousmane Mey, the decline in oil revenues was mitigated by good results in the collection of customs and tax, respectively at 700.8 billion francs ($1.4 billion) and of 1.345,8 billion ($2.6 billion), and revenues above forecast of 636 billion ($1.2 billion) and $ 1.345,8 billion ($2.6 billion).

After a leap to 5.5 per cent in 2013, the Cameroonian economy was then contracted to 5.3%. However, Governments do not fail to demonstrate a greater optimism for 2015, where their forecast focuses on performance of 6.3%, with a budget of the at 3.746,4 billion francs CFA ($7.4 billion).

This is a goal which is also based on the launch of a triennial Emergency Plan for the acceleration of growth, at a cost of 925 billion francs CFA ($1.8 billion), and for which the loan agreements was concluded with international financing institutions.

At the same time, the Government continues its policy of use of both domestic and external capital market started in 2010.

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