Cape Verde’s finance minister estimates 6% GDP growth in 2010

27 September 2010

Praia, Cape Verde, 27 Sep – Cape Verde’s economy is already showing signs of recovery, the island country’s finance minister said on Friday, estimating gross domestic product (GDP) growth of around 6 percent for 2010.

Cristina Duarte was speaking at the opening of the international conference focusing on the topic of “Mobilisation of Opportunities in the Post-Crisis” organised by the Banco de Cabo Verde (BCV) as part of commemorations of its 35th anniversary, to be celebrated on the 29th of this month.

Fiscal revenues have risen this year in year-on-year terms, while exports increased and the flow of tourists shows signs of major improvement, Duarte said.

“Up to 31 August customs revenues were up about 60 million escudos (544,000 euros) in year-on-year terms, there was an increase in direct foreign investment and the country is achieving a good rate of implementing the investment programme,” she added.

Duarte cited figures from the National Statistics Institute and stated that the confidence indicator had “entered a positive trend”, improving the situation of economic operators.

This was only possible due to measures such as reduction of the tax burden “to preserve families’ buying power”, reduction of the corporate income tax “to compensate for the economic operators’ loss of competitiveness” and by keeping the external debt at low levels, among others, she said.

Despite the international crisis, the economy grew 6.5 percent in 2008 and 4.5 percent in 2009, Duarte recalled, insisting that in 2010 the economy will grow 6 percent. (macauhub)