Africa-Press – Cape verde. The African Development Bank (AfDB) on Tuesday predicted “moderate growth” in the Cape Verdean economy of 5.3% this year and 4.9% in 2026, due to global uncertainties that could affect tourism, according to an analysis of the country.
In addition to tourism, growth in 2025 will be supported by “investments in the energy sector”.
The AfDB recalls that Cabo Verde has a GDP growth rate of 5.4% in 2023 and 7.3% in 2024.
The archipelago’s traditional economic engine “could be affected by global uncertainty in international trade, which reduces global growth and therefore tourism demand. The country should continue to implement its economic reforms to reinforce macroeconomic stability,” the financial institution added in the chapter dedicated to Cape Verde in the 2025 African Economic Outlook (AEO) report.
Inflation is expected to remain roughly unchanged at 1.4% in 2025 and 1.8% in 2026 “due to continued prudent macroeconomic policy.”
The outlook points to a fiscal deficit falling “to 2.4% of GDP in 2025 and 1.8% in 2026, as a result of a broader tax base, while the current account deficit is expected to be 2.6% of GDP in 2025 and 3% in 2026”.
The AEO 2025 was released today, during the AfDB annual meetings taking place in Abidjan, Ivory Coast, whose central theme is the mobilization of the continent’s resources, freeing it from external dependence.
According to the bank, unlocking Cabo Verde’s potential requires “consistent regulation, formalization of the economy and deepening regional integration.”
“Progress in good governance has been insufficient to mobilize the necessary development capital. Therefore, the country needs to continue implementing reforms that strengthen judicial independence, enforce contracts, increase private sector participation and institutional quality, reduce illicit financial flows and combat corruption,” he concluded.
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