BEAC predicts economic slow down in CEMAC sub regions

The Monetary Policy Committee of the Bank of Central African States’ meeting in its second session has projected a slowdown in economic activities by the end of the year 2015.

The committee projected growth rates are expected to reduce by 2.8 percent by the end of the year.

According to the Economic and Finance experts, the drop in oil prices has led to a slowdown in activities. The declaration was made on July 9, 2015 by the Governor of the Bank of Central African States (BEAC) Lucas Abaga Nchama.

During the first session of the Monetary Policy Committee in March 2015, economies in the sub region were urged to diversify resources of revenue and economic growth because of the different factors that influence monetary stability in the sub-region. Given the global insecurity situation and drop in oil price, CEMAC countries were recommended to boost other sectors like agriculture and telecommunication to induce growth but much has not been done in these areas.

The committee indicated the alleviation of pressure of inflammation will stand at 2.9 percent with a declining of fiscal balance at -3.7 percent of the Gross Domestic Product. However, the current external accounts deficit will witness an increase to 11.4 percent of the GDP.

The economies of the sub region will nevertheless witness a stable monetary situation with currency rates at 18.4 percent.

The Governor of BEAC indicated that the Monetary Policy Committee has resolved to drop by 50 points the interest rates for tenders by 2.45 percent after analysis and examination of different factors influencing the monetary and financial stability, including the attenuation of inflation pressure.

He said the move is intended to make business as flexible as possible consequently giving business persons and banks in the six member countries the requiem push to boost their economies.

The committee also approved the refinancing of the economies of the sub region for the third quarter of 2015 and first quarter of 2016 through commercial banks.