Cameroon cuts 2009 growth forecast to 3 pct: PM

By Tansa Musa

YAOUNDE (Reuters) - Cameroon has cut its economic growth forecast for 2009 to 3 percent from a previous figure of 4 percent when the budget was prepared late last year, the country's prime minister said late on Wednesday.

Prime Minister Ephraim Inoni said the global slowdown had slashed Cameroon's earnings from oil revenues, was threatening large mining projects and risked aggravating poverty and unemployment in the country.

Analysts said even the reduced forecast was too optimistic, as domestic demand was unlikely to offset lower export revenues.

Before the global crisis hit mining projects, Cameroon had targeted over $10 billion in new mining investments and was keen to develop its large hydroelectric potential.

Cameroon currently produces around 90,000 barrels of oil per day and the country's 2009 budget had assumed an oil price of around $68 per barrel. Benchmark Brent crude traded at close to $50 per barrel in London on Thursday, around half of its price a year ago.

"The economic growth rate for Cameroon for this year will be worse than 3 percent because we have a problem with stimulating growth and exploiting our huge potential," said Christian Penda Ekoka, an independent economic adviser and former director at the National Investment Corporation.

"We have not been receiving a lot of foreign direct assistance and prices of our basic export commodities are falling as a result of the global financial crisis," he said.

The revised growth forecast puts Cameroon's economy largely in line with the rest of Central Africa's six-nation CFA franc zone, which is rich in oil and minerals but has seen its 2009 forecast slashed to 2.8 percent due to the slowdown.