Cabo Verde: Third Review Under the Extended Credit Facility Arrangement, Request for Modification of Performance Criteria, and Request for an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde
IMF Staff Country Reports, January 16, 2024
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- Cabo Verde: Third Review Under the Extended Credit Facility Arrangement, Request for Modification of Performance Criteria, and Request for an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde
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Bibliographic details
- Published: January 16, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400265129.002
Executive summary and program status
- Performance under the economic reform program is strong.
- Post-Covid economic activity recovered as tourism returned to the islands.
- The Resilience and Sustainability Facility (RSF) will support the government’s effort to implement macro-critical climate reforms and catalyze private finance for climate adaptation and transition.
- Fiscal policy is anchored by an appropriate balance between fiscal consolidation to put debt on a downward path, while protecting the vulnerable and investing in key priority projects for future growth.
- The authorities are taking steps to strengthen the program and are encouraged to continue with an ambitious structural reform agenda.
Key findings and analysis
- Recovery dynamics: Economic activity recovered following the Covid shock, driven by the return of tourism to the islands.
- Climate and RSF role: The RSF is positioned to support macro-critical climate reforms and to catalyze private finance for climate adaptation and transition.
- Fiscal outlook and dependencies:
- The medium-term fiscal objectives depend on progress in:
- domestic revenue mobilization,
- streamlining tax exemptions,
- increasing the effectiveness of public investment projects,
- improving debt management.
- Structural reforms recommended:
- Continue reforms to adapt to the challenges posed by climate change.
- Reduce the cost of doing business.
- Accelerate public enterprise reforms.
Policy recommendations
- Maintain fiscal consolidation while protecting vulnerable groups and prioritizing key growth-enhancing projects.
- Advance domestic revenue mobilization efforts.
- Streamline tax exemptions to broaden the tax base.
- Enhance the effectiveness and prioritization of public investment projects.
- Improve debt management frameworks and practices.
- Implement macro-critical climate reforms supported by the RSF to attract private finance for adaptation and transition.
- Pursue structural reforms to lower business costs and progress public enterprise reform.
Publication and metadata
- Publication date: January 16, 2024
- Pages: 142
- Volume: 2024
- Issue: 009
- Series: Country Report No. 2024/009
- DOI: https://doi.org/10.5089/9798400265129.002
- Stock No: 1CPVEA2024001
- ISBN: 9798400265129
- ISSN: 1934-7685
Subjects and keywords
- Subjects: Climate change; Environment; External debt; Fiscal risks; International organization; Monetary policy; Public debt; Public financial management (PFM); Revenue administration
- Keywords: Cabo Verde's economy; climate action; Climate change; climate change adaptation; Fiscal risks; Global; reform measure; RSF reform
IMF Staff Country Report and press materials for Cabo Verde: Third Review under the Extended Credit Facility Arrangement; Request for Modification of Performance Criteria; and Request for an Arrangement under the Resilience and Sustainability Facility (January 16, 2024).
Content in this bundle
- 1cpvea2024001