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Cabo Verde: 2025 Article IV Consultation, Seventh Review Under the Extended Credit Facility Arrangement, and Third Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde

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  • International Monetary Fund

Abstract

The economy of Cabo Verde has been growing at a fast pace over the last four years. The authorities have maintained macroeconomic stability and advanced reforms, though climate risks, SOE pressures, and global uncertainties remain. Economic growth is projected at 5.2 percent in 2025, following 7.2 percent in 2024, both driven by strong tourism and resilient consumption spending. Inflation remains stable around the 2 percent target, following 1.0 percent on average in 2024. International reserves are adequate to protect the peg and in 2024 the current account balance recorded a surplus. Cabo Verde is nearing the end of its current political cycle, with legislative and presidential elections planned to take place in April and October 2026, respectively.

Suggested Citation

  • International Monetary Fund, 2026. "Cabo Verde: 2025 Article IV Consultation, Seventh Review Under the Extended Credit Facility Arrangement, and Third Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Directo," IMF Staff Country Reports 2026/053, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2026/053
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