(Ecofin Agency) - In Cabo Verde, the central bank published a report revising its 2019 economic growth forecast upward to 5.2%. Previously, this forecast was 4.7%. The new estimate takes into account the expected positive impacts of fiscal reforms initiated recently.
In the report, the bank explained that the country recorded a 5.5% growth in 2018 against 4% in 2017. According to the report, in the fourth quarter of the past year, GDP reached a historical high of 7.6% thanks to the continuous implementation of fiscal reforms as well as external factors.
In the report, the bank also indicated that external accounts improved thanks notably to the reduction of trade deficit and the decrease of revenues paid to non-resident investors while currency reserves increased to reach 5.6 imports months.
The institution also expects inflation to be around 0.9% in 2019 while the previous estimate was 1.4%. This estimate is based on the expected decline in commodity prices in the international market as well as of the decline in prices of unprocessed foods in the local market.