Cabo Verde’s economy grows 3.5% in 2016

15 March 2017

The Gross Domestic Product (GDP) of Cabo Verde (Cape Verde) grew by 3.6% in 2016, more than doubling the rate of 1.5% recorded in 2015, according to provisional data released by the archipelago’s government on Tuesday.

Finance Minister Olavo Correia said during a meeting with senior government officials that public debt increased from 127.8% of GDP in 2015 to 128.6% in 2016 and the budget deficit fell from 4.6% of GDP in 2015 to 3.5% in 2016.

As it was an election year, Cabo Verde (Cape Verde) organised its spending on a monthly basis until August 2016 and the state budget was introduced from September.

Correia was quoted by Portuguese news agency Lusa as saying the figures were positive and pointed to a trend for economic growth, a reduction of the budget deficit and of external financing.

Reduction of operating costs and state investment, increased tax collection capacity and restructuring of loss-making public enterprises are areas where, according to the minister, it is necessary to act quickly to contain the “potential risks” of the deficit and State debt.

“We are growing three times more than the average of recent years and we are lowering the budget deficit, but the country still has huge challenges ahead in terms of fiscal consolidation,” said Correia. (macauhub)