## 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](https://www.imf.org/en/publications/cr/issues/2023/07/18/cabo-verde-2023-article-iv-consultation-second-review-under-the-extended-credit-facility-536530)

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## Bibliographic details
- Published: July 18, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400250170.002

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### 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*

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_Source: https://www.imf.org/en/publications/cr/issues/2023/07/18/cabo-verde-2023-article-iv-consultation-second-review-under-the-extended-credit-facility-536530_