Cameroon: Economic and Political Overview
With a strategic location that makes the country a natural gateway into the landlocked region of Central Africa (including Chad, Central African Republic, and northern Congo), Cameroon is undoubtedly an influential country in the economic and monetary community of the region. Cameroon's economy has remained resilient to external shocks, but structural weaknesses hinder its potential. Between 2020 and 2023, overlapping crises led to an average GDP growth of just 2.6%. Growth is further slowed by poor infrastructure, especially in electricity, roads, and internet connectivity. Other challenges include an underdeveloped financial system and heavy reliance on commodity exports. The medium-term outlook is moderately positive, with real GDP growth projected at 3.7% in 2024 and slightly above 4% in 2025 and 2026 (World Bank). Key drivers include improved energy supply from the Nachtigal hydroelectric dam, which now accounts for one-third of the current supply, and increased public investment, particularly in infrastructure, targeting 7% of GDP by 2027.
The fiscal deficit fell to 0.8% of GDP in 2023, down from 1.1% in 2022, driven by lower fuel subsidies, reduced capital spending, and improved tax collection. Higher revenues supported increased public investment in 2024, with the deficit estimated at 0.8% in 2024 and projected at around 1% in the medium term (World Bank). Cameroon’s public debt is considered sustainable but carries a high risk of distress due to breached liquidity thresholds. It is expected to follow a downward trend amid nominal GDP growth, decreasing to 36.8% by 2026, from 40.3% in 2024. Average inflation fell to 4.7% in 2024 from 7.7% a year earlier, driven by BEAC’s restrictive monetary policy, easing foreign inflation, and government price controls, despite a fuel price hike in February 2024. The rate is expected to decline further to 3% in 2026 (World Bank).
Climate change and fragility continue to hinder growth and poverty reduction. Cameroon must rethink its growth model, emphasising private sector involvement, redefining the state's role, and boosting labour productivity. Poverty rates have stagnated since 2001, and rapid population growth has pushed extreme poverty above 6.6 million in 2023. Inequality remains high, with a Gini coefficient of 42.2, reflecting stark regional and urban-rural disparities (World Bank). Fragility is worsening, with conflicts now affecting nine of ten regions, including spillovers from neighbouring countries. According to data from the National Institute of Statistics in Cameroon, the unemployment rate in the country in 2024 stood at 3.6%; however, the unemployment rate among young graduates (25 to 35 years) is 5 times higher than that of non-schooled individuals.
| Main Indicators | 2023 (E) | 2024 (E) | 2025 (E) | 2026 (E) | 2027 (E) |
| GDP (billions USD) | 49.29 | 53.39 | 57.75 | 62.08 | 66.36 |
| GDP (Constant Prices, Annual % Change) | 3.2 | 3.9 | 4.2 | 4.3 | 4.7 |
| GDP per Capita (USD) | 1,723 | 1,821 | 1,923 | 2,018 | 2,107 |
| General Government Gross Debt (in % of GDP) | 43.2 | 40.3 | 38.3 | 36.8 | 35.4 |
| Inflation Rate (%) | 7.4 | 4.4 | 3.5 | 3.0 | 2.8 |
| Current Account (billions USD) | -1.91 | -1.51 | -2.04 | -2.47 | -2.54 |
| Current Account (in % of GDP) | -3.9 | -2.8 | -3.5 | -4.0 | -3.8 |
Source: IMF – World Economic Outlook Database, October 2021
Due to its abundant natural resources, Cameroon stands as a major global producer of goods like cocoa, coffee, bananas, palm products, tobacco, rubber, cotton, maize, and cassava. Before the development of the oil trade, agriculture was the country's main economic driver. Nowadays, the primary sector contributes 17.3% of the GDP and employs 43.4% of the active population (World Bank). Fishing and forestry are two of the country's additional significant activities. Moreover, the country has high-value varieties of timber. Coffee and cocoa production, which is concentrated in the English-speaking regions, suffers from political instability in the area. In 2024, in Far North Region, severe floods damaged over 85,000 hectares of farmland, killed 5,278 livestock, and submerged key fodder areas, affecting 450,000 people. In central and southern areas, the 2024 secondary maize season began in October under good conditions, with harvesting starting in January 2025. Ongoing insecurity in Far North, Northwest, and Southwest regions disrupted farming, restricting access to inputs and fields, reducing 2024 crop yields (FAO).
The secondary sector accounts for 25.5% of the GDP and employs 14.9% of the workforce. Key industries include petroleum refining, food processing, textiles, cement production, and logging. The petroleum sector, primarily centred around oil refining, plays a significant role in Cameroon's industrial output. Food processing is another vital component, with companies involved in the production of beverages, dairy products, and processed foods. The textile industry, though facing challenges, remains a notable sector, particularly in the production of cotton fabrics. Additionally, cement production contributes to infrastructure development and construction activities. Logging and timber processing, although facing sustainability concerns and regulatory challenges, are important contributors to the economy, reflecting Cameroon's rich forestry resources. Extractive industries represent around 20% of government revenues, a third of exports, and 4% of GDP (EITI), whereas the manufacturing sector accounts for 13% of GDP (World Bank). In addition to oil and gas, Cameroon's resources include bauxite ore and iron. LNG production is expected to offset the gradual decline in crude oil production.
The tertiary sector accounts for half of the GDP and employs 41.7% of the active population. Key areas include telecommunications, banking and finance, transportation, tourism, and retail. The telecommunications industry has experienced significant growth, with increased mobile and internet penetration rates across the country. Banking and financial services play a crucial role in facilitating commerce and investment, with both local and international institutions operating in the sector. Furthermore, retail, driven by urbanization and increasing consumer demand, contributes to commercial activity and employment opportunities across the country.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 43.4 | 14.9 | 41.7 |
| Value Added (in % of GDP) | 17.3 | 25.5 | 50.2 |
| Value Added (Annual % Change) | 2.2 | -0.4 | 3.9 |
Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.
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The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.}}
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
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Latest Update: May 2025
