IMF sees pick-up in Cameroon's economy

WASHINGTON (Reuters) - Cameroon's economy is set to improve as global economic activity picks up and spending on government projects rises, the International Monetary Fund said on Thursday,July 22

In an annual review of Cameroon's economy, the IMF forecast that economic growth would gradually climb to above 4.5 percent in 2014 from an expected 2.6 percent this year. It said the rise, in part, reflects recent investments in the West African country's oil sector.

Meanwhile, inflation should remain below 3 percent, the fund added.

The biggest risk to Cameroon's growth outlook is whether the global economic recovery is weaker or slower than anticipated, the IMF said. The country depends on commodity exports and global demand for its products which include oil, wood, rubber, cotton and aluminum.

The IMF welcomed steps to address concerns about the 2010 budget and urged the authorities to adopt measures to close the financing gap.

The fund said it was "important to protect priority capital spending, make vigorous efforts to mobilize revenues, and gradually phase out fuel subsidie"