Cabo Verde’s economic climate improves in 2nd quarter

20 July 2015

The economic climate in Cabo Verde (Cape Verde) improved slightly in the second quarter but the confidence indicator remained below the series average after contracting over the year-ago quarter, reported the archipelago’s National Statistics Institute (INE).

The Climate Survey of Economic Operators showed that the confidence indicator for retail establishments “continued the upward trend of the last quarter, but the economic situation in the sector remained unfavourable,” and the main constraints pointed out by industry entrepreneurs were insufficient demand and financial difficulties.

The tourism sector, one of the main economic activities of the archipelago, had a negative performance in the second quarter of 2015, and the confidence indicator recorded its lowest level since the series began.

The operators in this sector noted excessive bureaucracy and regulations as the main impediments to business development.

Another sector that has evolved negatively over the same quarter was residential tourism, which registered the lowest level in the past 19 consecutive quarters, and business owners pointed to insufficient demand and financial difficulties as limiting factors in the second quarter of 2015.

A sector that managed to post growth in the second quarter of 2015 was manufacturing, whose confidence indicator recorded the highest value of the last 29 consecutive quarters, with year-on-year growth. (macauhub/CV)