Deterioration of the competitiveness of the Cemac economies (Central Bank)

APA-Yaounde (Cameroon) From our correspondent: Felix Cyriaque Ebole Bola –

The competitiveness of the prices of the economies within the Economic Community of Central African States (CEMAC), estimated from the total real effective exchange rate (TEER), is characterized in the last quarter of 2019 by a reduction in the gains in Competitive compared to the level recorded during the first three months of the current year, according to a note of analysis of the Central Bank (Beac) reached Saturday at APA.

This decline in competitive positions on the international markets, which had decreased slightly in the second quarter by 0.02%, after a drop of 1.4% in the previous quarter, is attributable to the deterioration in competitiveness on the import front (+ 0.1%), offset by gains in export positions (-0.4%).

According to the Beac, this development reinforces the leading role of the major partner economies, particularly France, Germany and Italy, in the export performance of the CEMAC countries, the synchronization of economic movements having increased in recent years and leads to a greater sensitivity of sub-regional economies to the reversals of growth cycles in Europe.

Moreover, between the 1st and 2nd quarter of 2019, the CFA franc of the sub-region depreciated against the currencies of developed countries, ie -1.8% vis-a-vis the dollar, -1, 3% of the euro and -0.3% of the pound sterling, while the currency appreciated by 0.4% against the yuan.

FCEB / cd / APA