The International Monetary Fund Executive Board has concluded its 2026 Article IV consultation with Cameroon, judging that growth slowed in 2025 due to election-related disruptions and that the fiscal position weakened, while the outlook remains cautiously favorable with growth expected to recover in 2026 alongside a tighter fiscal stance. Cameroon’s economy is estimated to have grown by 3.1% in 2025 and inflation averaged 3.4% through December 2025, but preliminary estimates point to a non-oil primary deficit of 2.6% of GDP versus a budget target of 1.4% amid underperforming non-oil revenues and slippages in current spending. The current account deficit is expected to have widened to 3.9% of GDP in 2025, with growth projected at 3.3% and inflation at 2.9% in 2026, while the current account deficit is forecast to widen further to 5.3% of GDP in 2026. Directors called for sustained fiscal consolidation, stronger revenue mobilization, tighter expenditure controls and public investment management, completion of fuel subsidy reforms including adoption of an automatic fuel price setting mechanism with targeted support for vulnerable groups, and reinforced debt management given a high risk of debt distress, including prioritizing concessional project financing and embedding an arrears clearance plan in a credible medium-term financing strategy. Financial sector priorities included vigilance amid elevated non-performing loans and the sovereign-bank nexus, caution over an expanding state footprint in banking and stronger governance of state-owned banks, and accelerated AML/CFT reforms to support Cameroon’s exit from the Financial Action Task Force grey list. The authorities have consented to publication of the staff report for the consultation, which is expected to be published shortly, and the Board looked forward to continued engagement under the Post-Financing Assessment framework; the next Article IV consultation is expected on the standard 12-month cycle.
International Monetary Fund 2026-03-30
International Monetary Fund concludes Cameroon Article IV consultation and urges fiscal consolidation and stronger debt and financial sector governance
The IMF Executive Board concluded its 2026 Article IV consultation with Cameroon, citing slower 2025 growth from election-related disruptions, a weakened fiscal position, and a wider current account deficit, but a cautiously favorable outlook with growth expected to recover in 2026 under a tighter fiscal stance. Directors urged sustained fiscal consolidation, stronger revenue mobilization, tighter expenditure controls, completion of fuel subsidy reforms with an automatic fuel price mechanism and targeted support, reinforced debt management amid high debt distress risks, and vigilance over financial sector vulnerabilities, including elevated non-performing loans and the sovereign-bank nexus. They also called for faster anti-money laundering and counter-terrorist financing reforms to support Cameroon’s exit from the FATF grey list and noted continued engagement under the Post-Financing Assessment framework.