Central African Economic and Monetary Community: Common Policies in Support of Member Countries Reform Programs-Staff Report; and Statement by the Executive Director

This paper presents a report on the common policies in support of member countries reform programs in the Central African Economic and Monetary Community (CEMAC). The CEMAC’s economy lost some momentum in 2023 and the external position deteriorated somewhat, while inflation cooled but remained high. Updated statistics revealed a much more deteriorated fiscal situation than originally estimated. In the absence of decisive corrective actions, and with current policies unchanged, fiscal and external imbalances are set to widen in the medium term, threatening to reverse reserve accumulation and add to financial stability risks. Decisive corrective policies are warranted to address the sustained fiscal slippages and return to fiscal prudence. In order to boost potential output, faster progress is needed on strengthening anti-money laundering and combating the financing of terrorism, governance, and regulatory policies, as well as improving human capital, the business climate, the rule of law, financial inclusion, and regional infrastructure.