Cameroon’s Economic Update: Harnessing Forests and Natural Wealth for Sustainable Growth
The World Bank Group today launched the 2025 Cameroon Economic Update, titled ‘’Cameroon’s Green Gold: Unlocking the Value of Forests and Natural Capital’’. The report provides a comprehensive analysis of the nation’s recent economic developments, medium-term outlook, and the critical role of wealth accounting in assessing the country’s economic performance. The report places a special emphasis on the importance of sustainable forests and natural resources management as drivers of inclusive and resilient development.
According to the report, Cameroon’s GDP grew by 3.5% in 2024, up from 3.2% in 2023, driven by rising cocoa prices, enhanced cotton yields, and improved power supply. Average inflation declined sharply from 7.4% to 4.5% between 2023 and 2024, thanks to tighter monetary policy, price controls, and reduced import inflation. The current account deficit narrowed from 4.1% to 3.4% of GDP%, mainly due to the cocoa price surge. However, the overall fiscal deficit widened to 1.5% of GDP, compared to 0.7% of GDP in 2023, due to a slippage in current expenditures and weaker-than-expected revenues. Public debt rose slightly from 46.1% to 46.8% of GDP, with most of this increase in the form of external debt.
The medium-term outlook is moderately positive, with an anticipated average real GDP growth of 3.9% from 2025 to 2028, supported by improved power generation and increased public investment – particularly in the construction sector. Average inflation is expected to decline further, reaching the 3% CEMAC convergence criteria by 2027. However, the current account deficit is expected to increase at around 4.0% of GDP over the medium term, due to declining oil production and prices, mixed results from government industrial policies, and increased inputs as a result of higher public and private investment. While Cameroon’s external and overall public debt are expected to remain sustainable, the country faces a high risk of debt distress due to liquidity issues.
“Cameroon’s economy has demonstrated resilience amidst external shocks, yet multiple structural weaknesses – particularly infrastructure gaps – impede its potential,” said Robert Utz, World Bank Lead Country Economist and one of the report’s authors. ‘’A bold fiscal reform agenda is imperative to bridge those gaps and boost economy-wide productivity.”
The report also introduces national wealth accounting as a critical tool for policy makers to better understand Cameroon’s economic capacity to generate future income and sustain development. Although total national wealth grew from $311 billion in 1995 to $553 billion in 2020, national wealth per capita declined by 11% over the same period. Adjusted net savings (ANS) – a broader picture of a nation’s economic sustainability – was moderately negative between 2010 and 2020, suggesting that Cameroon is depleting its wealth slightly faster than it is accumulating new assets. Forest depletion accelerated dramatically after 2010, with the conversion of lowland forests for agricultural use between 2010 and 2020, five times the rate of the previous decade. At the same time, the ecological condition of Cameroon’s forests has deteriorated significantly, with satellite data showing declines in tree height, canopy cover, forest connectivity, and landscape naturalness
“To minimize the environmental impact of growth and preserve natural wealth, Cameroon could prioritize its high-value, vulnerable ecosystems and transition to a forest-based service economy, leveraging ecotourism, medicinal services with its unique flora, and forest-based knowledge,” said Cheick F. Kanté, World Bank Division Director for Cameroon, Central African Republic, the Republic of Congo, Gabon and Equatorial Guinea.
The report underscores that to achieve its goal of becoming an emerging economy by 2035, Cameroon must diversify beyond primary commodities. With one of Africa’s most unique ecosystems, a competitive tourism sector could become a key driver of growth and employment—leveraging natural capital that few other countries can match.
Distributed by APO Group on behalf of The World Bank Group.
