Economic Implications of COVID-19 and Key Lessons for Policymakers

Abstract

The economic and health implication of COVID-19 is broad-based on the Cameroonian economy, with the service sector likely to see the most adverse effects. Negative global spillovers from falling industrial and manufacturing activity in China will cause a retrenchment in exports due to falling external demand. Meanwhile, a weaker currency has exacerbated inflationary pressures, which suggest a more marked impact from COVID-19 in the near term. This paper employs a qualitative and data-centric approach to map the economic implications of COVID-19 on Cameroon’s economy with policy recommendations designed to attenuate the short-term negative spillovers and support a transition away from fossil fuels via targeted fiscal measures such as wage subsidies and a sector-specific approach digitization.

Keywords: COVID-19, Economic policy, Cameroon, exports

JEL Classification: 011