| Forecasts from The Economist Unit Intelligence about Cape Verde |
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The Economy Unit intelligence write forecasts about Cape Verde and tell us that "The ruling Partido Africano da Independência de Cabo Verde (PAICV) and the prime minister, José
The government will continue to provide a fiscal stimulus to offset the negative effects that an expected contraction in the tourism and construction sectors will have on domestic consumption levels. Real GDP growth is forecast to fall significantly owing to a contraction in the tourism and tourist home sectors, but it will remain positive at 1.8% in 2009 and rise moderately to 4% in 2010. Average inflation is forecast to fall to 4% in 2009, reflecting lower oil and food prices in international markets, before increasing to 4.5% in 2010, as commodity prices start rising again." Portugal remain the preferred partner in many areas, but claims the EIU, "the growth of investment and the arrival of more tourists from European countries are to reduce this dependence. And although It also continue to be the main economic partner, "Cape Verde will seek to strengthen South-South cooperation, especially with Brazil and Cuba, to take advantage of its privileged strategic position in the circuit of Atlantic trade" posits the EIU.
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