International Monetary Fund (IMF) approves disbursement of millions of dollars to Cape Verde
The International Monetary Fund approved the fourth review of the economic support program for Cape Verde and disbursed around 13 million dollars. The country recorded strong economic growth in 2023, but the IMF warns of a slowdown in the coming years.
The International Monetary Fund (IMF) today announced the approval of the fourth review of the 36-month credit program for Cape Verde. With this decision, the country will receive a disbursement of around 13 million dollars. In addition, the IMF also completed the first review of the archipelago's resilience and sustainability program.
According to the IMF report, Cape Verde continues to recover well from recent shocks. The economy grew 5.1 % in 2023, inflation remained low and international reserves are sufficient to protect the exchange rate parity. Public debt is also on a downward trajectory thanks to strong growth and a record primary surplus.
However, the IMF warns of a slowdown in the economy in the coming years, with growth projections of 4.7 % in 2024. The fund recommends maintaining restrictive monetary policy to protect exchange rate parity and implementing reforms to increase productivity and diversify the economy.
The report highlights the importance of investments in energy, water, infrastructure and inter-island connectivity to drive growth and climate resilience. Furthermore, the IMF emphasizes the need for reforms in public enterprises to improve financial performance and reduce fiscal risks.
This report was released by the International Monetary Fund.
