Cape Verdean economy expected to continue contracting in 2013

24 May 2013

Economic activities in Cape Verde are expected to continue contracting in 2013, a year in which average annual inflation is expected to total between 2.5 percent and 3.5 percent, the Bank of Cape Verde said Wednesday in Praia.

The projection takes into consideration contraction of business for Cape Verde’s main economic partners and is made on the basis that the archipelago’s current guidelines for macroeconomic policies will remain in place.

In terms of economic activities, the document noted that “the performance of the national private sector, affected in part by still restrictive financing conditions, may determine economic performance this year.”

“The pressures on family income (as well as an expected drop in remittances form emigrants) and in company revenues will in some measure contribute to an expected drop in family spending and in private investment.” The statement said.

The Bank of Cape Verde also forecast that the balance of payments would continue to post surpluses and net foreign reserves would guarantee around four months of imports. (macauhub)