Praia, Cabo Verde: An International Monetary Fund (IMF) team led by Mr. Martin Schindler visited Cabo Verde during July 21-24, 2026, to hold introductory discussions with the new government, which took office in mid-July. At the conclusion of the visit, the mission issued the following statement:
"The Cabo Verdean economy remains strong. Real GDP grew by 6.4 percent year-on-year in the first quarter of 2026, supported by robust investment activity and services exports. Inflation remained low at 1.1 percent in June, while international reserves continued to provide a comfortable buffer against external shocks. At the same time, important vulnerabilities remain, including elevated public debt and exposure to external and climate-related shocks.
"The mission held cordial and productive discussions with the new government on its policy intentions and its recently-adopted program. To this end, the mission welcomed the authorities' commitment to safeguard macroeconomic stability and fiscal sustainability while advancing reforms aimed at supporting inclusive growth, job creation, and improving living standards. At the same time, the mission welcomed the authorities' commitment to remain closely engaged with the IMF and continue the discussions in the period ahead.
"The IMF team emphasized the importance of preserving fiscal sustainability and keeping public debt on a firm downward trajectory. In this context, policies should remain fiscally prudent while protecting vulnerable households and avoiding broad-based, untargeted subsidies that could create permanent fiscal costs and erode the gains achieved in recent years. Continued efforts to strengthen public finances; address fiscal risks, including from state-owned enterprises; and advance structural and climate-related reforms will remain important for sustaining strong and inclusive growth.
"The IMF team met with Prime Minister and Minister of Finance Francisco Carvalho, Secretary of State for Finance Maria José Lopes, Minister of Economy, Trade, Industry and Digital Transition António Baptista, Minister for the Coordination of Special Projects and Access to Funding José Varela, Board Members of the Banco de Cabo Verde, other senior government officials, development partners, and representatives of the private sector. The mission thanks the authorities for their openness, excellent cooperation, and warm hospitality, and looks forward to continuing the close partnership between Cabo Verde and the IMF in support of macroeconomic stability, resilience, and sustainable development."
