The central bank of Cabo Verde (Cape Verde) has revised its forecast for the growth of the country’s economy in 2016 upwards, as well as economic growth in the range between 3% and 4% in 2017, according to a recently released report.

The Cabo Verde Central Bank Monetary Policy Report for October 2016 now shows the country’s economy will grow faster this year compared to the forecasts in the March report, which expected an increase of between 1.5% and 2.5%.

According to the Bank of Cabo Verde (BCV) the new forecasts reflect “the execution of operating costs and the more favourable development of private investment, in a context of more pronounced reduction of consumer prices, with positive impact on private consumption.”

On the supply side, the upward review is explained “by the significant growth of public administration, as well as the taxes collected in the first three months of the year, the recovery of housing and catering services and the strong dynamism of the construction sector in the most recent months.”

For 2017, economic growth is expected to approach the “lower limit of the range between 3% and 4%,” according to the BCV.

The Bank of Cabo Verde said that credit to the economy is expected to grow around 3.0% both in 2016 and in 2017, driven mainly by the increase in loans to private companies and individuals.

For 2017 the Cabo Verde government expects economic growth of around 5.5% and the reduction of the public deficit to 3%, according to the draft state budget, which will be discussed in the National Assembly this month. (macauhub)