Cameroon's management of the crisis remains a model. In the fiscal year 2016-2017, the inflation rates remained steady, indicating that the economy is strengthening. Given the growth in urbanization and improving administration, the financial situation of the region can be expected to remain positive throughout the coming decade.
A major economic crisis did hit Cameroon in the 1980’s and lasted until the early 2000’s, resulting in inflated prices, trade deficits and the fall of the government’s GDP. GDP is the measure of national income and output for any country’s economy.
An ambitious economic program to reverse the economic downturn.
To fight off this crisis, a substantial financial aid program was proposed by Germany, France, and the U.S.A. However, the government instead decided to undergo the ambitious program of cost reductions outlined by the International Monetary Fund (IMF). At first, these measures resulted in increasing crime rates, without having a major impact on the revival of the economy. Later in 1988, IMF aid package worth $150 Million was accepted along with Structural Adjustment Program (SAP) loan from the World Bank. The subsequent policy of Cameroon’s government then changed its focus and decided on paying off its international debt.
The financial crisis faced by the people of Cameroon was relieved in 2005, leading to a positive growth in the gross domestic product (GDP).
The global debt reduction program put Cameroon back on track
In 2007, the GDP of the country witnessed a positive growth due to an overall decrease in its international debt and improvement in the country’s governance, which led to an influx of foreign direct investment (FDI). The decreased corruption and betterment of the Cameroonian administration resulted in stronger relationships with large global corporations which were previously uncertain about entering the volatile market. Consequently, the buying power of the consumer’s also increased due to enhanced work opportunities and foreign exchange.
The GDP of the country steadily increased with slight variations until the end of 2014. There were years where the growth was negative; for instance in 2011 the GDP was $26.59 Billion and in 2012 it fell to $26.47 Billion. However, the overall impact of the negative figure was minimal on the everyday worker.
In 2017 the economy remains as solid as ever : Cameroon sets the standard
Moreover, the major setback that had a significant impact on Cameroon’s economy was the persistent pockets of insecurity at its eastern and northern borders owing to Boko Haram and the crisis of Central African Republic. These uncertainties directly had an impact on the economy due to reduced international trade and the inability of the domestic labor to carry on with their employment. Looking at Cameroon’s economy from a global perspective, the financial institutions were resilient compared to the global context such as the stunted economies of Organization for Economic Co-Operation and Development (OECD) member countries.
In the fiscal year 2016-2017, the inflation rates remained steady, indicating that the economy is strengthening. Given the growth in urbanization and improving administration, the financial situation of the region can be expected to remain positive throughout the coming decade.