An International Monetary Fund (IMF) mission led by Martin Schindler visited Cabo Verde from October 22 to November 4, 2025, for the 2025 Article IV Consultation and reviews under the Extended Credit Facility (ECF) and Resilience and Sustainability Facility (RSF) arrangements. The current ECF access is set at SDR 52.14 million (about US$70.98 million), while RSF access stands at SDR 23.69 million (around US$32.25 million).
At the end of the visit, Mr. Schindler stated: “I am pleased to announce that the IMF team and the Cabo Verdean authorities have held productive discussions under the 2025 Article IV consultation and reached staff-level agreements on the seventh review under the Extended Credit Facility (ECF) arrangement, and third and fourth reviews under the Resilience and Sustainability Facility (RSF) arrangement. Upon approval by the IMF's Executive Board, completion of the seventh ECF review will allow disbursement of SDR 2.37 million (approximately US$3.23 million), while the completion of the third and fourth RSF reviews will allow disbursement of up to SDR 7.896 million (approximately US$10.75 million), depending on reform progress under the RSF."
Schindler highlighted that Cabo Verde’s economic growth in 2024 was strong at 7.3 percent, with inflation at 1 percent and a current account surplus recorded for that year. Growth has continued into 2025, driven mainly by tourism, exports, and private consumption.
Fiscal outcomes for 2024 exceeded targets due to lower primary expenditures alongside higher tax revenue collection, contributing to a declining public debt-to-GDP ratio.
All quantitative performance criteria and indicative targets set for June 2025 under the ECF were met; no structural benchmarks were scheduled for this review period. Progress continues on reforms supported by the RSF.
The economic outlook remains positive with GDP growth in Q2 of 2025 reaching 6.2 percent year-on-year, largely attributed to increased tourist arrivals which surpassed previous records as well as net exports and private consumption offsetting weaker investment activity. For all of 2025, GDP growth is projected at 5.2 percent with inflation expected to settle around two percent—aligning with euro area trends.
Early data suggest that strong momentum in tourism revenues and remittances helped maintain a current account surplus of 5.4 percent of GDP during H1-2025; however, future deficits are anticipated as capital spending on climate-related projects increases. By September-end, gross international reserves stood at €942 million—exceeding reserve adequacy targets.
On fiscal matters for this year, robust revenue performance coupled with restrained current spending is expected to sustain positive results even though capital expenditure execution remains low.
The Central Bank’s Monetary Policy Committee recently kept policy rates unchanged but indicated ongoing vigilance over capital flows to protect its currency peg while monitoring inflation closely.
Schindler noted: “The macroeconomic outlook remains favorable but is subject to substantial downside risks. Cabo Verde is highly vulnerable to external shocks in energy, food, tourism, and global trade frameworks, compounded by climate threats such as extreme weather events.” He also mentioned possible fiscal risks tied to state-owned enterprise reforms or election-related pressures but acknowledged authorities’ consistent commitment to program goals.
During their stay in Praia, IMF staff met with Prime Minister Ulisses Correia e Silva; Vice Prime Minister and Finance Minister Olavo Correia; Central Bank Governor Oscar Santos; other government officials; private sector representatives; and development partners.
“The IMF team would like to express their gratitude to the Cabo Verdean authorities and other stakeholders for the productive discussions and warm hospitality,” said Schindler.