Cabo Verde: 2023 Article IV Consultation, Second Review Under the Extended Credit Facility Arrangement, and Request for Modification of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde
IMF Staff Country Reports, July 18, 2023
Source details
- Canonical URL
- Cabo Verde: 2023 Article IV Consultation, Second Review Under the Extended Credit Facility Arrangement, and Request for Modification of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde
Other formats
Bibliographic details
- Published: July 18, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400250170.002
Major findings and context
- Cabo Verde remains vulnerable to external shocks and climate related disruptions.
- Significant gains achieved so far need to be sustained over the medium term to:
- safeguard economic stability,
- build resilience, and
- promote inclusive growth.
- Fiscal policy aims to balance:
- credible growth-friendly fiscal consolidations,
- preserving debt sustainability,
- protecting the vulnerable, and
- investing in future growth.
Fiscal policy, revenue, and debt management
- Priority actions highlighted:
- keep progress in domestic revenue mobilization,
- streamline tax exemptions,
- increase the effectiveness of public investment projects, and
- continue improving debt management.
- Reform of public enterprises is critical to reduce fiscal risks.
Structural reforms and resilience
- Authorities are encouraged to continue an ambitious structural reform agenda to:
- adapt to the challenges posed by climate change,
- reduce the cost of doing business,
- strengthen social safety nets, and
- accelerate public enterprise reforms.
Policy recommendations (summarized)
- Advance domestic revenue mobilization measures.
- Rationalize and streamline tax exemptions.
- Enhance public investment project effectiveness and oversight.
- Strengthen debt management practices.
- Implement public enterprise reforms to contain fiscal risks.
- Pursue broader structural reforms to improve climate resilience, competitiveness, and social protection.
International Monetary Fund. Cabo Verde: 2023 Article IV Consultation, Second Review Under the Extended Credit Facility Arrangement, and Request for Modification of a Performance Criterion—Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde
Content in this bundle
- 1cpvea2023002