The National Monetary and Finance Committee of the Republic of Equatorial Guinea met in ordinary session on Tuesday 13th of this month, under the leadership of the Minister for Finance, the Economy and Planning, Lucas Abaga Nchama, to cover various matters from previous meetings and seek mechanisms for national and international economic growth.
With the participation of the Governor of BEAC; Abbas Makamat Tolli, the National Monetary and Finance Committee of the Republic of Equatorial Guinea met in the Board Room at the National Office of the Bank of Central African States (BEAC), in Malabo II, to cover matters regarding the global economy and finance in the Republic of Equatorial Guinea.
With a reading of the agenda, by the First Deputy Director of the National Directorate of BEAC; Genoveva Andeme Obiang, and then approval of the verbal procedures from the meeting of 5th December 2017, the work of the first meeting for Lucas Abaga Nchama, as leader of the committee, began
The first points covered concerned a review of the recommendations from the previous session and an analysis of the national and international economic, monetary and financial situation, from 31st December 2017, and the short and medium term forecasts.
In accordance with the global economic situation, the council noted the acceleration in economic growth in 2017, explaining the cyclical recovery of emerging and developing countries, and the resurgence of growth in developed countries. According to International Monetary Fund (IMF) forecasts, the global economy has gone from 3.2% in 2016 to 3.7% in 2017, and it is expected to stabilise at 3.9% for 2018.
With reference to the Economic and Monetary Community of Central Africa (CEMAC) area, growth was negative in 2017, falling 0.2% with respect to 2016, due to the prolonged effect of the fall in petroleum activities. However, the committee revealed that in 2018 growth in the area would be 2.8%.
The committee also pointed out that the price of raw materials and the main export products from CEMAC grew positively in 2017, in comparison with 2016, due to the agreement reached by the main exporting countries.
With respect to an analysis of the economic, monetary and financial situation for the Republic of Equatorial Guinea, the council reported that the expectations were opposite the initial forecasts, and that the country had improved some 2.7% in 2017, with respect to the 8.5% from 2016; and that lending to the economy had increased by 1,4% in 2017. The average annual rate of inflation was 1.1%, in comparison with 1.4% in 2016.
Based on everything covered in the session, the committee took note, so that the National Balance of Payments Committee could opt for ways for the organisation and evolution of negotiations on a working programme with the IMF, throughout 2018.
The monetary authority has reiterated its commitment to reactivating the economy and inviting the IMF to carry out a programme in accordance with the decision taken at the CEMAC Heads of State Conference, which took place in the month of December 2016.
Source: Official Web Page of the Government of the Republic of Equatorial Guinea