Cape Verde's Gross Domestic Product (GDP) growth outlook for 2025 has fallen from 5,9% to 5,4%. This is the World Bank's forecast, according to the Africa Pulse report released last week.

“We are practically growing at the limit of our potential, between 5% and 7%.”

"Therefore, it is within that range, in terms of what we consider today to be Cape Verde's economic growth potential: between 5% and 7%."

“Therefore, within this margin, this variation is normal.”

“But what we have to do and are doing is reform the economy so that our economic growth potential can increase.”, devalued Olavo Correia.

In an interview with Lusa in Washington, on the sidelines of the Annual Meetings of the International Monetary Fund (IMF) and the World Bank, Olavo Correia acknowledged challenges in the energy, connectivity, sanitation, health, training and attracting large private investments sectors, defending the need for structural reforms in these sectors, otherwise they would represent "bottlenecks to economic growth itself."

According to Olavo Correia, structural reforms are essential. The government must work to ensure that the Cape Verdean economy grows between 5% and 7% in the short term and then accelerate reforms so that the country's potential doubles and can reach growth rates above 10%, or between 10% and 12%.

The minister believes that Cape Verde is growing at a "good level", "well above sub-Saharan Africa" ​​and "global growth", but stressed that this rate is still insufficient for the country's current needs.

When asked by Lusa about the timeframe for Cape Verde to achieve double-digit economic growth, the minister estimated between two and three years, provided that reforms are accelerated and the country achieves a level of "excellent service" in the sectors that are crucial to driving that growth.

On another front, Olavo Correia predicts that within 10 years, Cape Verde will cease to be an upper-middle-income country and become a high-income country. Given the external risks to which Cape Verde is vulnerable, the government maintains an optimistic outlook, although it admits a tendency for a slight downturn in forecasts.

“The global economy has proven to be very resilient.”

"What we predicted a year ago, such as trade wars and their consequences for the global economy, is not happening."

"The global economic situation, although showing some contraction, demonstrates a great capacity for resilience, so we are not afraid of the future.", he stressed. 

Despite this, Cape Verde must preserve its macroeconomic stability, which is an important asset for the country, according to Olavo Correia, who insisted on the need to continue working so that economic growth can be much higher than the current level.

The Deputy Prime Minister also defended the importance of a stable macroeconomic framework, which is supported by inflation below 2%, a budget deficit between 0% and 1%, a positive primary balance, an economy growing above 5%, international reserves at historic levels covering more than eight months of imports for the first time in Cape Verde's history, and unemployment at historically low levels.

“So we are optimistic about global economic growth, but we have some homework to do.”, said.

The goal is to create more skilled and better-paying jobs so that Cape Verdeans can remain in the country with "dignity."

Regarding the ever-increasing demand for tourism in Cape Verde, the minister acknowledged a deficit in supply capacity and assured that ways are being sought to diversify the Cape Verdean economy so that it becomes a tourism economy, but also a greener, bluer, more digital, smarter, more inclusive economy, and this requires reforms.

Picture: © 2025 Fernando de Pina