Martedì 07 Feb 2012
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Forecasts from The Economist Unit Intelligence about Cape Verde

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 Maria Neves, are expected to remain in power in 2009-10. However, the government will come under increased pressure, as the global economic crisis will affect the country's economic performance and lead to rising unemployment.

 

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.

Relations with Angola are also narrow and "It's unlikely that Cape Verde seek greater regional integration in West Africa will aim to maintain existing links in order to develop stronger trade relations," said the EIU.

For EIU, in 2010-11, "the government need to keep costs low and continue the fiscal stimulus package to avoid unsustainable levels of public spending. But avoid significant cuts before the presidential and legislative elections in early 2011. " To meet these and other predictions EIU about our country see the website www.eiu.com.

 

 

 

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