Cape Verde: economic growth increases and the business climate is favorable

The pace of economic growth in Cape Verde recorded a slight increase in the first quarter of this year.

According to data released today by the Cape Verdean National Statistics Institute (INE), the business climate is favorable.

According to the Survey of Economic Agents, in the first quarter of 2023, the pace of economic growth increased slightly, but it is still lower than in the same quarter of 2022.

In the period under review, it was found that the confidence indicator trended downward in retail stores but still stood above the average of the series.

Hence, the sector’s conjuncture is favorable.

When asked about the constraints, entrepreneurs in this sector pointed to other factors and insufficient demand as the main constraints to the normal development of the activity of commercial companies in Cape Verde.

In tourism, the confidence indicator also had a downward trend but also stood above the average of the series, and the situation in the sector is favorable.

Insufficient demand was the main obstacle to the normal development of business activity in the first quarter of 2023, according to INE data.

The manufacturing industry also registered a downward trend, standing below the level of the series average but with a favorable environment in the sector.

Respondents pointed out that the main causes of the difficulties experienced in the sector were staff absenteeism in service, excessive interference, and state regulations.

In transport and services auxiliary to transport, the confidence indicator registered an increase, standing above the average of the series and with a favorable situation.

On the contrary, the conjuncture is unfavorable in construction, where the confidence indicator continued the upward trend of the last quarter, still standing below the average of the series.

Business people in this branch indicated the high level of interest rates, the difficulties in obtaining credit, and excessive bureaucracy as the main constraints during the first three months of 2023.

Also, in fair trade, the confidence indicator continued with the downward trend of recent quarters, in an unfavorable situation in this sector, standing below the series’ average.

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