Things Are Looking Up

The economic recovery is underway in Cameroon, led by inflation in the commodity complex, which is boosting government coffers, attracting foreign investment and complementing the authorities' efforts to raise productivity in the agricultural sector. We see exports leading the recovery, with the rise in commodity prices also ensuring the country flips back into a current account surplus in 2010. On the back of the resurgence in growth (albeit below trend), coupled with a modest rise in inflation, we now believe the Bank of Central African States has reached the end of the easing cycle, and that modest rate hikes can be expected in 2010.

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