Cape Verde budget forecasts economic growth of 7.5 percent

7 April 2006

Praia, Cape Verde, 07 April – The Cape Verde state budget for 2006, which is due to be discussed by the government, forecasts economic growth on the archipelago of 7.5 percent in 2006, a rate above that posted in the previous two years, the government said Wednesday.

Budget directives also point to inflation of 2 percent and overall public deficit of 4 percent, according to Sara Lopes, assistant minister to the prime minister.

In 2005, Cape Verde’s economic growth was of over 7 percent, a rate higher than had been expected thanks to the positive performance of foreign investment, exports and remittances from emigrants, according to the government.

According to Lopes, quoted in a government statement, the economic growth forecast for 2006 “demonstrates an upward trend and the solidity of this growth in Cape Verde.”

“This budget aims to consolidate the economic growth that has already begun, will control the quality of public expenditure and should bring together the continuation of a trajectory of macroeconomic stability with a climate that is favorable to growth and competitiveness of the Country,” Lopes said. (macauhub)