Africa-Press – Cape verde. Ukraine and climate enter Cape Verde’s OE 2024 accounts
The war that resulted from the Russian invasion in February 2022 continues to affect countries that may seem more distant, such as the Portuguese-speaking archipelago.
“ No one knows how deep the consequences of this war will be for the world, Africa and Cape Verde, whether in financial, budgetary or geopolitical terms ”, said Olavo Correia.
At the same time, we are experiencing a “ deep climate crisis ”.
All together, it worsens food insecurity globally and causes social tensions, as has happened in West Africa, off which Cape Verde is located, with great interdependence – there is a Cape Verdean diaspora on the continent, but the archipelago is also a destination for a population looking for better life conditions.
“ The year 2023 was difficult by all accounts” , a context that “ will certainly continue in 2024 ”, he said, arguing with numbers: the International Monetary Fund (IMF) expects “ the lowest growth rate since the 90s , worldwide” , falling at 3%, he highlighted.
The global inflationary wave persists and interest rates are rising to try to mitigate it – but along the way they restrict access to financial markets, he added.
“ We have to respond internally with stability ” at all levels, from income to macroeconomic indicators, he stressed.
“ Stability ” was the word repeated by the minister as one of the foundations of government policy, alongside reforms focused on digital and environmentally sustainable transformation, to attract investment, and a third foundation that involves “protecting the most vulnerable ” .
Cape Verde’s OE 2024 proposal amounts to around 86 billion escudos (782 million euros), a number corrected upwards in relation to the version released on Sunday.
The total value represents a 10% growth in relation to this year’s OE.
In the macroeconomic context, the economy is expected to grow by 4.7%, below the 5.7% forecast for this year.
Questioned by Lusa, Olavo Correia said that the perspective is purposely conservative, so that it can later be overcome.
“ If we forecast higher growth, we will soon have more revenue and we will ‘eat’ before we have produced results. I prefer that we have a more moderate forecast: if we grow more, then we will use the results of the work produced” , he highlighted.
“ It is very risky to be forecasting important values” in the macroeconomic domain, which could lead to an inflated forecast of revenues and expenses, added Olavo Correia, opting for the same tactic as in previous years.
“ In recent years we have managed to grow above forecasts ”, he concluded.
Once delivered, the OE 2024 proposal will await scheduling for discussion in the hemicycle of the National Assembly, in which the Movement for Democracy (MpD) has a majority (38 deputies), compared to 30 for the African Party for the Independence of Cape Verde ( PAICV) and four from the Independent and Democratic Cape Verdean Union (UCID). The Week with Lusa024 accounts
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