National Monetary and Finance Committee meet in ordinary session

The ordinary meeting of the National Monetary and finance Committee took place on Monday 10th December, at the BEAC headquarters in Malabo II, to examine the national and international economic situation.

The Minister for Finance, the Economy and Planning, Lucas Abaga Nchama; the Vice-governor of BEAC, DieudonnA Evou Mekou, together with the Minister for Mines and Energy, Gabriel Mbega Obiang Lima, and the Adviser to the BEAC Director, Salvador Mangue Ayingono, were at the meeting, which was overseen by the head of Finance.

After adopting the agenda and approving the minutes from the last meeting of 18th July 2018, the committee looked at the situation of the backdrop of the growth rate of the global economy since 30th September 2018, and also the short and long term perspectives. In relation to the situation regarding the global economy, the committee observed that economic activity will continue with the regular growth that began in 2016, explained in terms of vigorous growth in the United States and the strengthening of its trade activities.

In relation to emerging and developing countries, according to International Monetary Fund forecasts, the global economy would remain stable at 3.7% on 2018 and 2019, as in 2017. In the CEMAC zone, growth should increase from a rate of 0.2% in 2017 to 1.7% in 2018, and 3.4% in 2019, following the increase in the prices and production of crude oil, the acceleration of the implementation if economic, monetary and financial reforms, and programmes concluded with the IMF.

Following an analysis of the economic, monetary and financial situation in Equatorial Guinea, the committee observed that the non-petroleum sector would develop favourably, in contrast to petroleum, which would be penalised by the reduction in production and exports. Thus, economic growth would be -4.5% in 2018, compared to the -7.2% initially forecast.

The management of public finance should produce a budgetary surplus of +5% of GDP, due to the measures adopted by the Government to increase budgetary savings. Savings for the economy would increase some 3.4% to 30th September 2018, in comparison with the same period for 2017, and the annual average rate of inflation was 0.6% in September 2018, compared to 1.2% in September 2017.

Finally, the committee reported on the decisions of the UMAC and BEAC higher authorities.

Source: Equatorial Guinea Press and Information Office

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