Cape Verde economy moved out of deflation in 2005

18 January 2006

Praia, Cape Verde, 18 Jan – Cape Verde recorded a positive inflation rate of 0.4 percent in 2005, moving away from a state of deflation in 2004 when prices fell by 1.9 percent the archipelago’s National Statistics Institute (INE) reported.

According to the Bank of Cape Verde overall prices increased mainly due to energy prices.

From November to December 2005 prices in Cape Verde increased by 0.9 percent, INE said.

Business confidence in the archipelago has also increased, for the seventh consecutive quarter, INE reported.

In 2005, the most optimism was shown about the construction, retail, tourism, transport and service sectors, and only the manufacturing industry was seen negatively by businesspeople.

The International Monetary Fund (IMF) has forecast that the Cape Verde economy grew by around 6.5 percent in 2005.(macauhub)