Budget Support Group positive about Cabo Verde’s economic policy

23 November 2015

The Budget Support Group (BSG) has given a positive appraisal of Cabo Verde’s (Cape Verde’s) economic and fiscal policy, as part of the second of two annual visits to the archipelago, Cape Verdean weekly newspaper A Semana reported.

The group said in its final statement on this second visit that the Cabo Verde economy registered growth of 1.4 percent in 2014.

The members of the group – African Development Bank, World Bank, Luxembourg, Portugal, Spain and the European Union – warned that the level of economic activity in Cabo Verde must improve and that deflation and high unemployment were characteristic of economies operating below capacity.

Finance Minister Cristina Duarte, confirmed that the archipelago’s economy was growing below its capacity and said she believed that conditions were in place for economic growth to resume with investments and reforms that had been introduced.

Duarte based her comments on forecasts recently released by the International Monetary Fund of growth of Cabo Verde’s economy of 3.5 percent in 2015 and 4 percent in 2016.

The newspaper reported that this was the last time that Spain would be part of the BSG, as the Spanish government had decided to change its strategy on international cooperation including, among other changes, a reduction in donations. (macauhub/CV/PT)

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