2015 growth rate projected at 5 per cent

The Monetary Policy Committee of BEAC held its fourth and last session for the year in Douala on Thursday, December 18.

The growth rate of economies of the Central African Economic and Monetary Community (CEMAC) may end at 5 per cent in 2015. This was made public in Douala on Thursday, December 18 by the Governor of the Bank of Central African States (BEAC), Lucas Abaga Nchama, during a press briefing that concluded a lengthy deliberation of the bank’s Monetary Policy Committee (CPM).

The Governor of BEAC, who doubles as the Statutory President of the CPM revealed this after their fourth regular meeting during which the Committee made an assessment of the 2014 global and sub-regional macroeconomic developments as well as prospects for 2015.

At the international level, he mentioned that the recovery of global economic activities took off in 2014 in a less sustainable pace than initially planned.

The downward revision of growth forecast for 2015, he said, is due to the difficult recovery of economic credit, despite the accommodative monetary policies that have been implemented by major central banks. At the sub-regional level, the downward revision is particularly due to the fall in the price of petroleum products in the international market.

Due to the drop in prices and other factors, the updated projections for 2014 showed a real growth of 4.9 per cent instead of a previous forecast of 5.6 per cent.

According to a press release that sanctioned the fourth ordinary CPM meeting in the port city of Douala, the growth rate for 2015 may end at 5 per cent thanks to the dynamism of the non-oil sector, a decline in inflation pressures to 2.7 per cent from 3.7 per cent and an increase in the external current account deficit to -13.8 per cent of Gross domestic Product among others.

However, the committee's press release spelt out clearly that the growth can be negatively influenced by a greater decline than expected in the prices of petroleum products, a slower recovery in the Euro zone, the slowdown in demand from emerging countries, the threats of the Boko Haram terrorist group, the persistence of the Central African crisis and the Ebola outbreak.

Addressing issues related to foreign exchange reserves, Lucas Abaga Nchama said, he was informed of the situation at the end of November 2014 and has approved the foreign reserves management strategy for the first quarter of 2015. He told the national and international press that the Central Bank is doing well and that the level of its reserve is comfortable for the moment.

Since part of the Committee’s duties is to advise states, the Chairman said the various economies should be careful in their spending, be far-sighted, and diversify economic activities for a sustainable growth.

Taking into consideration the different factors that may influence the monetary stability of the sub-region, the BEAC Monetary Policy Committee maintained the key rate at 2.95 percent.