Cape Verde inflation at 4 to 5 pct and under control, government says

5 October 2007

Praia, Cape Verde, 5 Oct – Inflation in Cape Verde stands at around 4 to 5 percent, at levels that are under control and in line with the country’s macroeconomic stability, the Cape Verdean finance minister said Thursday in Praia.

According to news agency Inforpress, Cristina Duarte was speaking at the opening a meeting with a mission from the International Monetary Fund (IMF), to discuss the country’s economic and financial situation.

According to the minister, inflation of 4 to 5 percent, “does not constitute a risk,” to the Cape Verdean economy.

In relation to public finances, the minister said that the first half had been characterized by greater budgetary tightening, which had led to, “an overall surplus of 2 percent of GDP.”

Duarte also said that growth of GDP would be of around 6 to 7 percent, noting that this would be essentially due to internal demand, via consumer spending and private investment.

The IMF mission, headed by Maitland Macfarlain, is meeting this week with the Cape Verdean authorities as well as public and private sector representatives, for a wide-ranging assessment of the archipelago’s economic and financial situation. (macauhub)