THE CAMEROONIAN ECONOMY TEN YEARS AGO (Part 2 of 2) Cameroon`s balance of trade deficit was cut from CFA114.66bn in 2001 to CFA64.7bn to last year. The world situation was favourable, thus lending our economy a shot in the arm. For instance, the world economy grew at 2.8 per cent, better than the 2.2 per cent recorded two years ago. In the CEMAC region, GDP stood at 3.7 per cent, with projections for this year estimated at 4 per cent. Inflation is expected to stay at 3 per cent. Even so, it is hoped that once the Douala Stock Exchange goes fully operational, the situation will firm up further. Nevertheless, it has not all been a bed of roses. The vexatious frequent power cuts by the National Electricity Corporation AES Sonel have exacted a toll on the economy and dampened the spirits of the Cameroonian user. For example, a ALUCAM which is an industrial giant has been able to function only at 30 per cent of its full capacity. Although some companies sought alternative sources of energy, not much has changed in terms of output. Cameroon Airlines saw its turnover fall by 8.3 per cent to 37.9bn as a result of stiff competition from competitors such as SN Brussels and Swiss International Airlines. The process of privatization is also slow, notably in the case of CAMTEL and SNEC. At the international level, the war in Iraq may affect Cameroon`s economy adversely, in terms of the quantity of foreign crude oil imported. The state should address these areas of concern in order to place the economy on a better footing. There is also an urgent need to consolidate some near-moribund initiatives such as the good governance and the fight against corruption. It must not be forgotten that turning the economy around needs sustained action.