Central African Economic and Monetary Community: Common Policies in Support of Member Countries Reform Programs-Staff Report; and Statement by the Executive Director

International Monetary Fund

No 2021/148, IMF Staff Country Reports from International Monetary Fund

Abstract: Context and risks. The pandemic may have a long-lasting impact on CEMAC’s growth potential, which is already curtailed by structural, governance, and transparency issues. The policy response from national and regional authorities in 2020 helped mitigate the economic fallout. CEMAC, however, experienced a severe recession in 2020, fiscal and external deficits increased, and public debt rose with some countries having debt sustainability issues. The region is facing an increasing dilemma between internal and external stability, as external reserves fell sharply between mid-2020 and March 2021. A moderate recovery in economic growth is expected from 2021. Supported by lower than previously projected total external financing of €4.8 billion over 2021–23, international reserves build-up would be slower than pre-pandemic. This outlook is highly uncertain and contingent on the evolution of the pandemic and the vaccination program. Other significant risks include delayed implementation of the ongoing or possible new Fund-supported programs, uncertainties in filling large external financing needs, oil prices, and a possible deterioration in the security situation.

Keywords: CEMAC member country; Policy recommendation; CEMAC authorities; fund emergency assistance; IMF's transparency policy; COVID-19; Fiscal stance; Monetary base; Global; Central Africa (search for similar items in EconPapers)
Pages: 58
Date: 2021-07-07
New Economics Papers: this item is included in nep-isf and nep-mac
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