Cape Verdean economy expected to post 5 pct growth in 2013

22 October 2012

The Cape Verdean economy is expected to grow 5 percent and the inflation rate to range between 2.5 percent and 3.5 percent in 2013, according to the macroeconomic outlook set out in the proposed State Budget for next year, which was presented Friday to the country’s parliament.

According to the Cape Verdean press, the State Budget proposal includes expenses totalling 60.4 billion Cape Verdean escudos, which is 3.3 billion escudos or 5.7 percent more than in 2012, and revenues of 47 billion Cape Verdean escudos, which is an increase of 23.4 percent on this year’s budget.

As a result, the proposed State Budget for 2013 includes a budget deficit if 13.4 billion Cape Verdean escudos, which will be funded, according to the Minister for Finance and Planning, Cristina Duarte, with subsidised loans.

The Minister said that public debt had been taken on at very low cost and added that the new budget was “not expansionist” but rather ensured execution of the investment programme.

Public debt is expected to total 90 percent of gross domestic product (GDP), and scheduled investment are expected to consume 25.9 billion escudos, or 14.96 percent of GDP.

Health, Education, Science and Technology will be government priorities for next year. (macauhub)