Cape Verde’s central bank expects GDP recovery of 4 to 5 percent in 2010
[ 2009-11-26
]
Praia, Cape Verde, 26 Nov – The Bank of Cape Verde (BCV) is expecting a “slight recovery” of the economy in 2010, with gross domestic product (GDP) growth of between 4 and 5 percent, after “continues slowdown” due to an “unfavourable international climate.”
The project, which was published in the Monetary Policy Report sent to the Cape Verdean government, also points to stabilisation of the average annual variation in the consumer price index (CPI), of between 2 and 3 percent, and comes at a time when the country’s parliament is debating the state budget for 2010.
The document also outlines a recovery of economic activity, alongside a global deficit of 11.8 percent of GDP and monetary policy directed at maintaining fixed euro parity, based on stability of the main flows of foreign capital and conditioned by developments in budgetary policy.
In terms of inflation, the economic report for September said that the figures “are a testament to the pronounced trend for deceleration of inflation, seen since the end of 2008.”
In terms of budgetary execution in the period, the central bank said that it expected “a deterioration of the global public deficit as a result of the joint effect of an expected fall in tax revenues, of a rise in operating expenses and a significant increase in investment expenses.” (macauhub)
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