Economic growth in Cape Verde above 8% in 2022 “almost a certainty”

The Prime Minister of Cape Verde, Ulisses Correia e Silva, promised today in parliament that it is “almost a certainty” that the archipelago will have an economic growth of more than 8% of the Gross Domestic Product (GDP), which will thus return to levels prior to pandemic.

“We are almost at the end of the year, we are almost certain that growth will be greater than 8%, either through data from the Bank of Cape Verde, or from international financial institutions that work with Cabo Verde”, said the head of the Government, during the monthly debate with the prime minister in parliament, dedicated to the theme “The Private Sector in Cape Verde’s sustainable development strategy,” proposed by the Executive.

“They are not predictable by chance, they are data with support”, retorted Ulisses Correia e Silva, when criticized by the opposition about the reality of the numbers presented by the Government, namely by the voice of the president of the African Independence Party of Cape Verde, Rui Semedo, which aimed at the executive’s “bazofaria” (bravado).

Cape Verde is facing a deep economic and financial crisis, resulting from the sharp drop in tourist demand – a sector that guarantees 25% of the archipelago’s GDP – since March 2020, due to the covid-19 pandemic.

In 2020, it experienced a historic economic recession, equivalent to 14.8% of GDP, followed by growth of 7% in 2021 driven by the recovery in tourist demand.

For 2022, due to the economic consequences of the war in Ukraine, namely the rise in prices, the Cape Verdean government lowered its growth forecast in June from 6% to 4%, which, however, was revised again, now to more than 8%.

If these predictions are confirmed, Cape Verde’s GDP will resume in two years (2021 and 2022) the pre-pandemic volume.

“For 2023, the macroeconomic prospects are less favourable, due to the effects of the conflict and geopolitical tensions in the erosion of purchasing power resulting from high inflation, as well as the uncertainty and loss of confidence of economic agents, combined with the tightening of financing conditions in the main international markets. Thus, a moderation of growth of around 5% is expected, meanwhile estimating that the GDP in value will return to the pre-pandemic level by the end of 2022”, announced on October 28 the governor of the Bank of Cape Verde, Óscar Santos.

With information from Sapo