IMF expects Cabo Verde’s GDP to grow by 3 pct in 2014

15 July 2014

Cabo Verde’s (Cape Verde’s) gross domestic product (GDP) is expected to grow by 3 percent in 2014 compared to 0.5 percent growth in 2013, according to a report from the technical team of the International Monetary Fund (IMF) which visited Cabo Verde at the beginning of the year on another mission to assess the country’s situation.

The report said that improvement of the economic climate in the Euro Zone was a good sign for Cape Verdean tourism, as were remittances from emigrants and Foreign Direct Investment (FDI).

Domestically, consumer and investor confidence is expected to start to recover driven by more careful planning of monetary policy, the IMF report said.

The document also noted that inflation was expected to rise but would remain at below 3 percent and added that the current account deficit would increase in 2014 based on increased demand for imports.

In the report the IMF praised “economic and social advances achieved in the last decade, and macroeconomic management that ahs helped boost foreign reserves and preserve exchange rate parity,” and calls on the government to re-establish protections and carry out structural reform to support long term growth.

The IMF also said that fiscal consolidation achieved in 2013 was also positive as were the Government’s plans to contain spending in 2014 and that it supported the efforts the government made to boost internal revenues.(macauhub/CV)