Cape Verde economy stands up “well” to crisis and growth “remains solid,” International Monetary Fund says

10 December 2009

Washington, United States, 10 Dec – The Cape Verdean economy has stood up “well” to the world financial crisis, thanks to “prudent” economic managements and a “strong base” and continues to see “solid” rates of growth, according to the International Monetary Fund (IMF).

“Growth remains solid, inflation has returned to low levels and domestic debt continues to shrink. The global financial crisis had little impact on the financial sector and, despite a slight slowdown, foreign reserves remain adequate,” noted IMF assistant director, Murilo Portugal, in a statement published Tuesday in Washington.

Under the terms of the Policy Support Instrument (PSI), approved in July 2006 and extended for a year last June, the executive board of the IMF advises the Cape Verdean government about economic progress, and concluded its latest review on 7 December.

According to the IMF, this year’s tax deficit is due to investment needs and social spending.

Public investment in infrastructures, it said, had not affected the stability of indicators and should have a positive impact in terms of the country’s growth and competitiveness.

According to the IMF, Cape Verde has room to gradually lower its interest rates and should focus on developing the domestic financial market. (macauhub)