Standard & Poor’s expects Cape Verdean economy to grow by average of 3.5 pct between 2015 and 2018

5 May 2015

The economy of Cabo Verde (Cape Verde) is expected to register average real growth of 3.5 percent between 2015 and 2018, according to Standard & Poor’s in the same report that kept the archipelago’s credit rating at “B/B” for the long and short term.

In the recently published report, S&P said economic growth was based on increased tourism revenue, increased domestic demand and lower energy prices.

The document also mentioned as positive factors that the country remained politically stable, continued to benefit from technical assistance and continued support from multilateral donors.

However, Standard & Poor’s said the assigned credit rating was a result of the country’s fiscal and external imbalances, as it is dependent on the tourism sector of the weakened European economies and has high levels of public debt.

Keeping the outlook for the archipelago’s economy at “stable”, S&P said exports of services, particularly tourism, would benefit from the likely recovery of European economies and continuing instability in North Africa. (macauhub/CV)