"Compared to the October 2023 projections, the real growth of the Gross Domestic Product (GDP) for 2024 was revised upwards by 0.3 percentage points", announced the central bank.

The improvement in the forecast for this year reflects a downward revision in prices and the updating of the national accounts.

According to the BCV, there is a stabilization, taking into account that the GDP growth in 2023 was 5.1%.

The new forecast is 0.3 percentage points above the one reaffirmed today by the International Monetary Fund (IMF) in Praia, which points to a growth of 4.7% in 2024, "converging to a potential growth of 4.5 percent by 2028", announced the fund.

Although separated by a few tenths, the two institutions coincide in the idea that "the positive effects of the boost in the economy and tourism after the pandemic continue to dissipate, predicting that they will end this year", as described by the central bank.

The post-covid-19 pandemic recovery led Cape Verde's GDP to a growth rate of 17% in 2022, well above normal, and should now return to pre-pandemic levels.

Regarding 2025, the central bank's forecast remains unchanged in relation to the perspective that was outlined, indicating a growth of 5.4%.

Regarding the annual average inflation, the BCV predicts that it will drop to 1.2% in 2024 and 1% in 2025.

Compared to the October 2023 projections, the expected inflation rate for 2024 was revised down by one percentage point and for 2025 remained unchanged.

"Despite the expectation of some volatility in energy prices due to geopolitical issues, it is anticipated that the inflation rate will maintain a downward trajectory for 2024 and 2025, reaching levels more consistent with the objective of price stability", it is added in the document.

The BCV also forecasts that "the stock of net foreign reserves should guarantee around 6 and 5.7 months of imports, in 2024 and 2025, respectively".

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