The International Monetary fund (IMF) says Cameroon will witness moderate economic growth under its current economic policies in 2013.
A statement by IMF Executive Board on Tuesday in Abidjan, Cote d’ Ivoire, said the economic growth would imply a modest per capita growth.
``The Fund projects real GDP to increase gradually to five and half per cent by 2018.
“Non-oil growth is projected to be supported by major public investment projects.
“Economic recovery strengthened in 2012 with growth reaching 4.4 per cent when compared with the 4.2 per cent in 2011, reflecting an increase in the value of oil exports,’’ it said.
It, however, said the current account deficit widened from 2.9 per cent of GDP in 2011 to 3.7 per cent in 2012 following a decrease in net income.
The board stated that the widening of the current account deficit was due to higher profit repatriation by local subsidiaries of international companies.
``Although Cameroon has had robust growth in the past few years, there has been little growth in per capita income, despite a relatively diversified and well-endowed economy,’’ it said.
IMF said that the banking system had stabilized but remained a cause for concern.
According to IMF, only two out of the five commercial banks in financial distress appear to be in the process of re-establishing their financial soundness.
The board welcomed the recovery of economic activity in a low inflation environment, adding that the economy still faced vulnerabilities and impediments to private sector led growth.
It urged the authorities to renew efforts on fiscal, financial and structural reforms needed to meet Cameroon’s growth potential. (NAN)