Cameroon’s economy grew 3.5% in 2025 despite a sharp drop in exports ⁰

Cameroon’s economy expanded by 3.5% in real terms in 2025, but the growth came largely from domestic demand rather than stronger export performance, according to the National Institute of Statistics (INS).

In its report on fourth-quarter 2025 national accounts, the INS said annual economic growth reached 3.5% compared with 2024. Excluding oil and natural gas, growth stood at 3.8%.

The figures point to an economy that continued to expand, but with growth driven primarily by spending at home rather than by stronger external demand. Over the year, export volumes fell 7.6%, while imports rose 10.1%, leaving the trade deficit at 3.9% of nominal GDP.

Domestic demand remained the main growth engine

According to the INS, domestic demand was the main source of economic growth in 2025. Final consumption increased 4.6%, while investment rose 6.8%. Household consumption expanded 4.4%, reflecting resilient consumer spending, while government consumption increased 6%, providing additional support to economic activity.

Investment also strengthened during the year. Gross fixed capital formation rose 6.8%, driven by a 16.3% increase in public investment and 4.2% growth in private investment. That spending supported sectors such as construction, engineering services and equipment-related activities.

At the same time, it raises a broader question about the quality of growth. A significant share of investment still relies on imported machinery, equipment and intermediate goods, suggesting that stronger domestic demand has also fueled higher imports.

Exports weakened as imports accelerated

External trade remained the economy’s main weak spot in 2025. Goods exports fell 10% in volume over the year, while services exports grew 2.7%.

Meanwhile, goods imports increased 10.6%, and services imports rose 7%. The result was an economy that relied increasingly on imported products to sustain domestic activity while generating fewer export earnings to offset those purchases.

The INS data show some improvement during the final quarter of the year. On a seasonally adjusted basis, total exports rose 3.5% between the third and fourth quarters of 2025, with goods exports increasing 6% and services exports 8.2%. Total imports edged down 0.1% over the same period.

That quarterly improvement, however, did not reverse the broader trend. Compared with the fourth quarter of 2024, total exports were still down 8.5%, while imports were up 13.2%.

Although the trade deficit narrowed during the fourth quarter to 4.5% of GDP for the period, the country still ended 2025 with a full-year trade deficit equivalent to 3.9% of nominal GDP.

Services continued to lead the economy

On the production side, the services sector remained Cameroon’s strongest growth driver. Output expanded 4.6% over the year, supported by financial services (9.7%), information and communications (9.3%), transport (4.2%) and public services (4.7%).

Industry posted more modest growth of 2%. Construction expanded 4.8%, while water supply and sanitation grew 6.4%. Those gains were partly offset by a 6.9% decline in extractive industries, particularly oil and gas.

Growth in the primary sector slowed to 1.7%. Industrial and export agriculture contracted 3.2%, reducing the sector’s contribution to export earnings at a time when stronger external sales are becoming increasingly important.

Growth remains uneven

The INS figures show that Cameroon’s economy continued to grow in 2025, supported by household spending, investment, construction and services. But they also point to an economy with an increasingly unbalanced growth model.

Domestic demand is providing solid support for activity, yet rising imports and weaker exports leave the country more exposed to external pressures and a widening trade gap.

Over the longer term, sustaining growth will require more than stronger domestic spending. It will depend on expanding productive capacity, increasing local manufacturing, reducing reliance on imports where feasible and strengthening the country’s export base. For now, Cameroon’s economy is growing. The next challenge will be making that growth more balanced and more competitive.

Source: Business in Cameroon