IMF forecasts 4.3 pct growth in Cape Verdean GDP in 2018

The International Monetary Fund forecasts that Cape Verdean gross domestic product will expand by 4.3 percent this year.

The IMF makes the forecast in a written statement it issued after members of its staff visited Cape Verde to discuss the economy with the authorities there.

“In 2017, the economy is estimated to have expanded by 4 percent, supported by the double digit-growth in tourist arrivals, the recovery in credit to the private sector and stronger consumer and business confidence,” the IMF says. “These factors are expected to boost growth further to 4.3 percent in 2018.”

The IMF says the Cape Verdean government should keep improving its collection of taxes and customs dues so it can hit its target of a budget deficit 3.1 percent of GDP.

The government should exert more effort to put its fiscal house in order and accelerate the restructuring of state-owned enterprises, the IMF says.