Cabo Verde central bank predicts 5.0% economic growth in 2019 and 2020

18 October 2019

Cabo Verde’s economy is expected to grow at a rate close to 5.0% in 2019 and 2020, according to forecasts from the archipelago’s central bank included in the monetary policy report published on Thursday in Praia, which said the macroeconomic environment. remained favourable.

“Gross domestic product (GDP) in volume grew 5.7% in the first half, driven mainly by the dynamics of public administration, taxes net of subsidies, trade, real estate and other services and construction,” said the central bank citing figures released by the National Statistics Institute.

The document also pointed to a “steady” rise in the inflation rate, which is expected to be 1.2% and 1.3% in 2019 and 2020, respectively.

“The increase in the country’s official reserves led to the expansion of the money supply in the first eight months of the year, in a context of subdued growth in the amount of credit to the private sector and some reduction in the average interest rate applied to loan operations,” said the report.

The Bank of Cabo Verde said that the good external accounts led to accumulation of the country’s net international reserves, in the order of 41 million euros, “and the overall balance should remain in surplus and net international reserves should cover 5.88 and 5.69 months of imports of goods and services in 2019 and 2020, respectively.”

The report cited figures released by the Ministry of Finance to state that public debt stood at 117% of Gross Domestic Product at the end of the first half of 2019, compared with 124% of GDP in the first half of 2018.

The Cape Verdean central bank also expects growth in credit to the economy of between 3.0% and 4.0% for 2019 and 2020, in line with the most recent developments and forecasts for economic activity and with a view to greater efficiency. of budgetary measures for risk-sharing. (Macauhub)