Economy

National Institute of Statistics raises concern over rising trade deficit.

by Edmond
17 May 2024 01:44
1015 views

Local products at Douala port bound for foreign markets

The National Institute of Statistics, NIS, has expressed concern about Cameroon´s rising trade deficit, positing that the tendency raises concerns about the economic stability of the nation.
The expression is contained in the Institute´s most recent publication released on May 8. It showed that the nation´s trade deficit started growing at an alarming rate beginning from 2023.

Specifically, NIS indicated that the gap had widened, exceeding 2,004 billion FCFA in 2023. The Institute warned that this is the highest level of increase recorded since 2015.

The data indicated that in percentage points that the year-on-year deficit surged by 40.3%, up from 1,428 billion FCFA in 2022.

"The significant deterioration in the trade balance is a result of a 14.2% decline in export revenues, combined with a 1.7% increase in import expenditures," analysts from the National Institute of Statistics explained.

Harping that, with export revenues totaling 2,988.6 billion FCFA in 2023, Cameroon witnessed its first decline in exports since 2017.

This, it said, is with the exception of the pandemic-hit year of 2020, which, because of the closure of borders worldwide, virtually all countries in the world suffered significant trade deficits.

The expert statisticians further indicated that the decline in export revenues could be linked to decreased sales of oil and natural gas, both of which accounted for 52% of the nation's export earnings in previous years.

Crude oil, accounting for 37.7% of total export revenues, saw a significant decrease of 25.6% year-on-year, with exports totaling 1,127.1 billion FCFA.

Liquefied natural gas, which experienced a rapid surge last year, declined sharply by 33.3%, the institution stated.

Revenues generated from this export amounted to 421.3 billion FCFA in 2023, compared to 631.5 billion FCFA the previous year, representing 14.1% of total export revenues a more detailed analysis in the NIS report showed.

During the review period also, the country's import expenditures soared to 4,993 billion FCFA, driven by purchases of fuels and lubricants (22.6% of total expenditures), as well as clinker (1.8%).

With the NIS noting that since the fire incident at the National Oil Refining Company, SONARA, towards the end of May, 2019, Cameroon has relied solely on the importation of petroleum products to meet local demand and supply needs.

The National Institute of Statistics warned that the widening trade deficit raises concerns about Cameroon's economic stability and underscores the need for more workable strategies to boost export revenues and curtail import expenditures in the coming years.