{
  "title": "IMF Executive Board Completes First Review Under the Extended Credit Facility for Cabo Verde",
  "publication": "IMF News, January 17, 2023",
  "sourceUrl": "https://www.imf.org/en/news/articles/2023/01/17/pr2305-imf-executive-board-completes-first-review-under-the-extended-credit-facility-for-cabo-verde",
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  "summary": "IMF Executive Board Completes First Review Under the Extended Credit Facility for Cabo Verde",
  "publishDate": "2023-01-17",
  "sections": [
    {
      "heading": "Review outcome and disbursement",
      "content": "- The Executive Board completed the first review under the 36-month Extended Credit Facility (ECF) approved on June 15, 2022.\n- Completion of the review allows authorities to draw the equivalent of SDR 11.26 million (47.50 percent of quota or about US$ 15.19 million).\n- Total disbursement after the review: SDR 22.52 million (95 percent of quota or about US$ 30.18 million).\n- The Executive Board’s decision was taken on a lapse-of-time basis."
    },
    {
      "heading": "Economic performance in 2022 and near-term outlook",
      "content": "- Real GDP growth is currently estimated at 10.5 percent in 2022.\n- Real GDP growth is projected to moderate to 4.4 percent in 2023.\n- Inflation: 8.5 percent year-on-year at end October 2022.\n- Authorities stepped up support to the vulnerable through well targeted subsidies on basic food items and electricity, which are expected to continue through the first half of 2023.\n- Inflation is forecast to decline in 2023 but remain above its recent five-year historical average."
    },
    {
      "heading": "Fiscal position, debt, and medium-term fiscal outlook",
      "content": "- The debt burden is estimated to have declined to 128.1 percent of GDP by end-2022.\n- Economic growth contributed to a reduction in the debt-to-GDP ratio.\n- Authorities decided to save the projected revenue overperformance in 2022 to further advance the program’s fiscal consolidation and debt reduction objectives.\n- The 2023 fiscal plan would result in a slightly improved primary fiscal balance compared to the program and includes prudent contingencies to safeguard against revenue shortfalls.\n- Over the medium-term:\n  - Fiscal consolidation will be aided by continued revenue mobilization and spending measures.\n  - The primary fiscal balance is expected to shift into surplus by 2026."
    },
    {
      "heading": "Program implementation and performance metrics",
      "content": "- All end-June 2022 Performance Criteria (PCs) and Indicative Targets (ITs) were met.\n- The Structural Benchmarks (SBs) for end-June 2022 and end-September 2022 were also met.\n- All end-September 2022 ITs were met."
    },
    {
      "heading": "Risks and policy priorities",
      "content": "- Noted risks to the outlook:\n  - Softening of economic prospects in key tourist markets.\n  - Persistently elevated rates of inflation and its impact on the most vulnerable.\n  - Resurgence of COVID-19 and lockdowns.\n  - Fiscal risks from SOEs.\n  - Climate-related shocks presenting medium- and long-term risks.\n- Authorities’ stated priorities:\n  - Preserve fiscal and debt sustainability.\n  - Provide support to the vulnerable and support the economic recovery.\n  - Advance revenue mobilization, particularly through the digitalization of services.\n  - Implement reforms to reduce fiscal risks from SOEs.\n  - Monetary and financial policy to remain focused on protecting the peg and safeguarding financial sector stability.\n  - Accelerate implementation of climate-change mitigation and adaptation measures.\n\nIMF Press Release No. 23/05, January 17, 2023.\n\n---\n\n\n References\n\n- Cabo Verde and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/01/17/pr2305-imf-executive-board-completes-first-review-under-the-extended-credit-facility-for-cabo-verde"
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    "Published: January 17, 2023",
    "The Executive Board completed the first review under the 36-month Extended Credit Facility (ECF) approved on June 15, 2022.",
    "Completion of the review allows authorities to draw the equivalent of SDR 11.26 million (47.50 percent of quota or about US$ 15.19 million).",
    "Total disbursement after the review: SDR 22.52 million (95 percent of quota or about US$ 30.18 million).",
    "The Executive Board’s decision was taken on a lapse-of-time basis.",
    "Real GDP growth is currently estimated at 10.5 percent in 2022.",
    "Real GDP growth is projected to moderate to 4.4 percent in 2023.",
    "Inflation: 8.5 percent year-on-year at end October 2022.",
    "Authorities stepped up support to the vulnerable through well targeted subsidies on basic food items and electricity, which are expected to continue through the first half of 2023.",
    "Inflation is forecast to decline in 2023 but remain above its recent five-year historical average.",
    "The debt burden is estimated to have declined to 128.1 percent of GDP by end-2022.",
    "Economic growth contributed to a reduction in the debt-to-GDP ratio.",
    "Authorities decided to save the projected revenue overperformance in 2022 to further advance the program’s fiscal consolidation and debt reduction objectives.",
    "The 2023 fiscal plan would result in a slightly improved primary fiscal balance compared to the program and includes prudent contingencies to safeguard against revenue shortfalls.",
    "Over the medium-term:",
    "All end-June 2022 Performance Criteria (PCs) and Indicative Targets (ITs) were met.",
    "The Structural Benchmarks (SBs) for end-June 2022 and end-September 2022 were also met.",
    "All end-September 2022 ITs were met.",
    "Noted risks to the outlook:",
    "Authorities’ stated priorities:",
    "[Cabo Verde and the IMF](http://www.imf.org/external/country/CPV/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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