Cape Verde GDP growth of over 7 percent in 2005, government says

23 January 2006

Praia, Cape Verde, 23 Jan – The Cape Verde economy grew by over 7 percent in 2005, more than had been forecast, thanks to foreign investment, exports and emigrant’s remittances, the government of the archipelago said.

In a statement issued in Praia, the capital of the Cape Verde islands, the Ministry of Finance and Planning said it was optimistic about the progress of the economy, and said that gross domestic product (GDP) growth was down to, “the good performance of the private sector together with the favorable progress of exports of goods and services, public investment, direct foreign investment and remittances from emigrants.”

In 2005, said the office of Minister João Serra, economic growth totaled “over 7 percent” and the inflation rate increased, standing at 0.4 percent based on a set of indicators drawn up by the country’s National Statistics Institute (INE).

For the seventh consecutive quarter, the statement said, the INE confidence indicator, in the construction, commerce, tourism, manufacturing industry, transport and services sectors showed an improvement, thus confirming “the positive progress of the economy.”

The Ministry also pointed out Cape Verde’s ranking in the Economic Freedom Index drawn up by the Wall Street Journal and the Heritage Foundation, where the country was ranked second only to Botswana amongst African nations.

Overall in the index Cape Verde moved from 110th place in 2001, to 46th place in 2006 of a total 161 countries, ranking just below countries such as France, Italy and above countries such as Greece, Brazil and South Africa. (macauhub)