Central Bank cuts back on its growth forecast

The Bank of Central African States has revised downward its growth forecast for the CEMAC region from 6.1% to 5.7% in 2014, a decision which reflects the decline in petroleum activities. The directory rate of BEAC remains unchanged at 2.95% after three drops within one year.

The Bank of Central Africa States (BEAC) has revised downward its forecast of an average economic growth for the six countries of the CEMAC (Cameroon, Gabon, Congo-Brazzaville, Equatorial Guinea, CAR and Chad) from 6.1% to 5.7% in 2014.

This decision reflects the fall in the oil markets and sluggish growth in the European Union - main customer of most of the countries in the region.

The continuous fall of oil prices, which dropped below $85 a barrel during the month of October, could penalise the CEMAC which all the Member States - with the exception of the Central African Republic who are exporting crude oil.

Black gold represents 36% of the region's GDP and 87% of its exports, according to Reuters estimates.