Cape Verde: Economic growth forecast between 6 and 7 percent in 2009, unchanged from 2008

6 October 2008

Praia, Cape Verde, 6 Oct – The Cape Verdean government expects gross domestic product (GDP) growth this year of between 6 and 7 percent, or 0.5 percentage points less than initially projected, and expects similar growth in 2009, Finance Minister, Cristina Duarte said in Praia Friday.

At a press conference following a meeting with representatives of the International Monetary Fund (IMF), Duarte said that, “this is still a level of growth that is considered to be robust.”

This projection was based, she said, on string “domestic demand, both as a result of public investment and foreign direct investment,” but also to “reasonable growth of domestic credit, which saw a 24 percent rise in the first quarter,” of this year.

Good management of public finances, which led to the budgetary execution being in line with what had been projected at the end of the first half, was another reason for this year’s economic growth projections.

In relation to inflation, this year it is expected to be 6.5 percent, and next year between 3 and 4 percent.