Growth of Cabo Verde’s economy expected to accelerate in 2015

5 March 2015

The growth of Cabo Verde’s (Cape Verde’s) economy is expected to accelerate in 2015, said in Praia the head of the first annual mission of the International Monetary Fund (IMF) to the archipelago, warning of the high levels of public debt and budget deficit.

Ulrich Jacoby, who has been in Cabo Verde for the last two weeks to assess the country’s macroeconomic situation, said the Cape Verdean economy had experienced great difficulties in 2014, due to a lack of economic recovery in the European Union, on which Cabo Verde is very dependent, as well as the Ebola outbreak, which decreased tourist flows in West Africa.

Cited by Portuguese news agency Lusa, Jacoby welcomed the increase in exports, particularly of fish, the recovery in foreign direct investment, more flexible economic policy and the measures recently taken by the Bank of Cabo Verde to stimulate lending to the economy.

For 2015, the head of the IMF mission expects accelerated economic growth, reflecting the recovery in Europe, the recovery of tourism, increased foreign direct investment and declines in oil prices, but warned of two issues: debt, which is expected to reach 112.7 percent of GDP, and the budget deficit.

The IMF also welcomed “encouraging progress” in operational terms and performance of companies that are strategic for the Cape Verdean state, including the flagship airline TACV and the Electra power company.

Another IMF mission is scheduled to visit Cabo Verde in the last quarter of the year. (macauhub/CV)