IMF upbeat about Cape Verde growth but urges ongoing reform

29 Jan 18

Growth in the African island country of Cape Verde is buoyant and likely to hit 4.3% this year, according to an International Monetary Fund review.

Increasing numbers of tourists, improved consumer and business confidence and recovery in credit available to the private sector have all ed drive growth, the IMF said following an Article IV check.

Over the medium term, growth is expected to stabilise at 4%.

But the IMF urged Cape Verde to continue with its programme of reforms, in particular fiscal consolidation and the restructuring of state-owned enterprises.

Easing pressure on the government to support Cape Verde’s airline, housing, and power companies is expected to boost investor confidence, accelerate medium-term growth, decrease public debt and reduce the risk of external debt distress, the fund said.

Max Alier, who led the IMF review, said: “Steady implementation of structural reforms is critical to boost potential growth, foster job creation, and reduce poverty.

“Improving quality of education and training are central to increase productivity and address the high levels of youth and women unemployment.”

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