Cabo Verde’s Consumer Confidence Hits Four-Year High

In December, Cape Verde witnessed a notable rise in consumer confidence, achieving the highest index value of 14 in four years.

This peak signifies a renewal of economic optimism not observed since the onset of the COVID-19 pandemic in January 2020.

In a recent survey, the INE of Cape Verde found optimistic projections for household finances and the national economy.

In the fourth quarter of 2023, we further confirmed the upward movement in consumer confidence.

Families reported a favorable view of their financial circumstances and the nation’s economic advancement, even amidst rising prices and unemployment.

Many feel unable to save, but there is a small rise in those who believe savings are possible.

Despite possible challenges related to living costs and job availability, households maintain a strong expectation for an improved financial and economic situation in the future.

This optimism, crucial for Cape Verde’s recovery post-pandemic, demonstrates confidence in the economy’s resilience and potential.

The INE’s consistent analysis and surveys offer valuable insights into Cape Verde’s economic state, signaling a cautiously optimistic future outlook.

Background

Cape Verde’s economic landscape has been under close watch, especially considering the global impact of the COVID-19 pandemic.

Historically, the nation’s economy relies significantly on tourism, remittances, and foreign investment, sectors hit hard by global crises.

This recent surge in consumer confidence is a testament to the resilience and adaptability of the Cape Verdean economy and its people.

The rebound to pre-pandemic levels of consumer confidence suggests effective national strategies to mitigate the economic fallout.

Cape Verde has worked towards diversifying its economy, focusing on renewable energy and technology alongside traditional sectors.