Cabo Verde economy expected to post maximum growth of 4.5 pct

27 June 2016

The economy of Cabo Verde (Cape Verde) is expected to post maximum growth of 4.5 percent in 2016, according to the draft State Budget approved Thursday by the country’s government, the Minister for the Presidency of the Council of Ministers said in Praia.

“The government projects growth of between 3.5 and 4.5 percent based on an increase in foreign direct investment (FDI), of productivity and confidence of economic agents,” said Fernando Elísio Freire, estimating that the rate of inflation will be between 0.2 and 1.2 percent.

With expenditure of 60 billion escudos (US$605 million), the draft State Budget outlines a deficit of 5.2 percent of gross domestic product (GDP) which, according to Freire, is a drop of 2.1 percentage points against 2015.

Cabo Verde’s public debt is currently estimated at 121 percent of GDP.

The draft budget will be presented to Parliament Monday and its discussion and approval is expected to be schedule for before the end of July. (macauhub/CV)