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Staff Report for the 2019 Article IV Consultation and Request for an Eighteen-Month Policy Coordination Instrument-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde
2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde
This 2016 Article IV Consultation highlights that the economic growth of Cabo Verde in 2015 stagnated at 1.5 percent, slightly below the 1.9 percent registered in 2014. Tourism recovered and remittances remained robust, but foreign direct investment (FDI) and public investment slowed. The unemployment rate declined to 12.4 percent, as did youth unemployment, which nevertheless remained high at 28.6 percent. Consumer price inflation remained muted owing to lower food and energy prices, averaging 0.1 percent for 2015. In 2016, growth is forecast to recover to 3.2 percent supported by FDI, domestic demand, agriculture, and tourism, which should benefit from the mild upswing in Europe.
This paper discusses key findings of the Sixth Review under the Policy Support Instrument (PSI) for Cape Verde. Policy implementation under the PSI-supported program continues to be strong; all PSIs quantitative targets except for one at end-December 2008 were met. In 2009, real GDP growth is expected to decelerate as external demand and private sector growth weakens. IMF staff recommends completion of the sixth PSI review and granting of the waiver on the nonobservance of the assessment criterion on net domestic assets of the Bank of Cape Verde.