This follows discussions under the 2025 Article IV Consultation and programme reviews under the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF).
The mission reached staff-level agreements with the authorities on the seventh review of the ECF and the third and fourth reviews of the RSF.
Once approved by the IMF Executive Board, the agreements will unlock disbursements totalling approximately $14 million, contingent on continued reform progress.
Schindler praised Cabo Verde’s economic management, noting that “robust 2024 economic growth momentum has continued into 2025, underpinned by tourism, strong exports and private consumption.”
Economic growth reached 7.3% in 2024 with inflation at 1% and a current account surplus. Public debt continues to decline as the fiscal balance outperformed programme targets due to strong tax revenue and restrained spending.
For 2025, gross domestic product (GDP) growth is projected at 5.2% while inflation is expected to stabilise at 2%, broadly in line with the euro area.
The current account surplus stood at 5.4% of GDP for the first half of 2025, supported by booming tourism and remittances, though it is expected to narrow as infrastructure and climate investment expand.
Cabo Verde’s international reserves rose to $1 billion by September 2025, equivalent to 5.5 months of imports. The IMF confirmed that all performance criteria and targets under the ECF were met, with structural reforms advancing under the RSF.
Fiscal discipline remains a cornerstone of the country’s success, with authorities maintaining tight control over spending. The Central Bank of Cabo Verde has kept interest rates steady, focusing on safeguarding the currency peg and ensuring price stability.
The IMF warned, however, that Cabo Verde remains vulnerable to external shocks in energy, food and tourism, as well as climate-related risks. It urged the authorities to sustain reform momentum, particularly in state-owned enterprises, to preserve fiscal sustainability.
The mission held meetings with Prime Minister Ulisses Correia e Silva, Vice Prime Minister and Finance Minister Olavo Correia, Central Bank Governor Oscar Santos, and representatives from the private sector and development partners.
–IMF/ChannelAfrica–
