Cape Verde » Outlook

International Property Brokers forecast that the ruling Cape Verde is expected to remain stable in power and to win the 2008 municipal elections. Real GDP is forecast to grow by 6.9% in 2007 and 7.4% in 2008, driven by rising tourist arrivals and increasing construction activity.

Inflation is forecast to edge down gently to average 2.8% in 2007 and 2.4% in 2008, helped by the active use of monetary instruments by the central bank.

The current-account deficit is forecast to widen sharply from 11.2% of GDP in 2006 to 15.1% of GDP in 2007 and 16.8% of GDP, remaining largely to rising imports.