Cape Verde’s pace of economic growth falls for 34 consecutive quarters

15 July 2013

The pace of Cape Verde’s economic growth continued its downward trend in the second quarter of the year, with the climate indicator posting the lowest figure in the last 34 consecutive quarters, the island country’s National Statistics Institute announced.

The Institute added in a statement released on Friday that the economic climate indicator for the quarter in question performed negatively year-on-year and that the economic situation was also unfavourable.

This situational outlook is compiled based on opinions transmitted by businesspeople involved in construction, trade in stores, tourism, the transformation industry, and transports and auxiliary transport services.

Reacting to figures released by Banco de Cabo Verde which indicate that the country’s public debt reached 95 percent of gross domestic product in 2012, Neves stated that his government did not intend to implement an austerity policy, “despite the problems the country currently faces.”

He added that the government would continue to “negotiate and mobilise resources with our partners so that the economy continues to grow and we can successfully get through this period.”

BCV’s annual report was published last week. It indicates that the central government’s public debt, excluding consolidated financial mobilisation securities, grew by 20 percent in 2012, accounting for 95 percent of GDP. Economic growth also slowed to just 1 percent. (macauhub)