Summary:Cameroon’s macroeconomic and security environments have deteriorated since the last consultation. In 2014–15, the economy has shown resilience in the face of the twin shocks of the oil price slump and heightened security threats, with still robust growth and low inflation. However, fiscal performance has weakened and the government continued to accumulate domestic arrears, as expenditure pressures have shifted from fuel subsidies to security expenditure. Cameroon’s economic outlook has worsened and proximate risks have become more dominant. As a result of projected financing gaps and a surge in public infrastructure investment, public debt is expected to increase rapidly. Growth is projected to stabilize at about 5 percent in the medium-term, a rate lower than what would be needed to achieve emerging market status by 2035.
