The Mineral Industry Of Other Central African Countries

Economic growth in Cameroon was restricted during 1987 owing to a decrease in oil prices during 1986 and the falling value of the U.S. dollar in 1987. The yearly budget reflected a significant drop in revenues and expenditures. Taxes on imports and some exports were increased to raise revenue. The shortage of revenue and the lack of liquidity had restricted the Government's operation and investment programs. External public debt reached an estimated $3.2 billion2 representing 20.8% of the estimated gross domestic product (GDP) of $12.3 billion. The Government operated at an 8.7% deficit in 1987. The GDP growth rate had fallen to 0.6% in 1987 and was projected to remain at that level in 1988. Economic planning was managed through a series of 5-year plans. The country was under the sixth 5-year plan, which would end in 1991. The plan stressed balanced development as one method to achieve the desired results. Sources of revenue for the year included direct and allied taxes (31.2%). customs collections (31.0%), and oil royalties (28.0%). The oil royalties in 1987 represented a larger part of the budget than in 1986. In January 1987, eight African oil exporting countries, including Cameroon, formed the African Petroleum Producers' Association (APPA). The eight countries represented about 80% of the total African oil production of 5.2 million barrels per day in 1987. Cameroon produced approximately 3% of total APPA oil production. Cameroon produced approximately 68.5 million barrels of crude oil in 1987, slightly less than that produced in 1986. Earnings also fell in 1987, not only from falling production, but also from declining oil prices and the fall in value of the U.S. dollar on world markets. Oil had been the main stimulus of Cameroon's growth throughout the past decade, and a key generator of export revenues and financial resources for the economy.