LAGOS, Oct 3 – Cameroon’s economic growth outlook is weakening in 2026 as declining hydrocarbons production, delays in expanding electricity transmission capacity and rising fuel subsidies put pressure on the economy, according to the International Monetary Fund (IMF).
An IMF staff team led by Christine Dieterich conducted a Post-Financing Assessment in Yaoundé from September 17 to 30, meeting with government officials, the central bank, private-sector representatives, banks, civil society organizations and development partners.
Cameroon’s economy grew 3.5% in 2025, matching the previous year’s performance. The IMF said the services sector remained resilient, but weaker hydrocarbons production and delays in increasing electricity transmission capacity are expected to result in a modest slowdown in 2026.
Inflation has continued to moderate, averaging 2.6% through August 2026, but the IMF expects price pressures to reverse as food inflation accelerates.
Fiscal Pressures Increase
Cameroon’s fiscal position deteriorated in 2025, with the overall budget deficit widening to 2.1% of GDP, from 1.5% in 2024.
The IMF expects a further, though modest, deterioration in 2026, partly because higher international oil prices have increased the cost of fuel subsidies.
The Fund also identified several downside risks to the economic outlook, including tighter conditions in international capital markets, slow implementation of structural reforms and continuing security and climate-related challenges.
Cameroon’s latest debt sustainability assessment continues to classify the country as facing a high overall risk of debt distress.
IMF Calls for Fiscal Tightening and Reform
The IMF said maintaining macroeconomic stability will require tighter fiscal policy alongside stronger domestic revenue mobilisation and greater access to concessional financing.
“Sustaining hard-won macroeconomic stability in a shock-prone world requires fiscal tightening, boosting domestic revenue mobilization, and marshalling concessional financing,” Dieterich said.
The Fund also called for reforms aimed at strengthening governance of public expenditure, improving the management of state-owned enterprises and deepening Cameroon’s financial sector.
The IMF said these measures should complement policies designed to support economic growth while improving the resilience of public finances.
The 2026 Post-Financing Assessment is expected to be presented to the IMF Executive Board in December 2026.
What Is a Post-Financing Assessment?
A Post-Financing Assessment (PFA) applies to countries with outstanding IMF credit above specified absolute or quota-based thresholds that do not currently have an IMF-supported programme or a Staff-Monitored Programme.
The assessment reviews a country’s economic policies and whether its macroeconomic framework remains consistent with medium-term economic viability. It also examines the implications for the country’s capacity to repay its outstanding obligations to the IMF.
