TY - BOOK ID - 77996414 TI - Cabo Verde : Staff Report for the 2014 Article IV Consultation. PY - 2014 SN - 1484372956 1484387864 9781484387863 1498350747 9781498350747 9781498319980 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Economic development KW - Financial risk management KW - Risk management KW - Development, Economic KW - Economic growth KW - Growth, Economic KW - Economic policy KW - Economics KW - Statics and dynamics (Social sciences) KW - Development economics KW - Resource curse KW - Cabo Verde KW - Cap-Vert KW - Cape Verde KW - Cape Verde Islands KW - Capo Verde KW - Iles du Cap-Vert KW - Ilhas do Cabo Verde KW - Kapverde KW - Province de Cap-Vert (Portugal) KW - Província de Cabo Verde (Portugal) KW - Republic of Cabo Verde KW - Republic of Cape Verde KW - República de Cabo Verde KW - República do Cabo Verde KW - République du Cap-Vert KW - Respublika Zelenogo Mysa KW - Economic conditions. KW - Economic policy. KW - Economic indicators KW - Economic forecasting KW - Forecasting KW - Business indicators KW - Indicators, Business KW - Indicators, Economic KW - Leading indicators KW - Economic history KW - Quality of life KW - Index numbers (Economics) KW - Social indicators KW - International Monetary Fund KW - Internationaal monetair fonds KW - International monetary fund KW - E-books KW - Banks and Banking KW - Exports and Imports KW - Macroeconomics KW - Public Finance KW - Industries: Financial Services KW - Statistics KW - Debt KW - Debt Management KW - Sovereign Debt KW - International Lending and Debt Problems KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Fiscal Policy KW - Monetary Policy KW - Data Collection and Data Estimation Methodology KW - Computer Programs: Other KW - Public finance & taxation KW - International economics KW - Banking KW - Finance KW - Econometrics & economic statistics KW - Public debt KW - External debt KW - Central banks KW - Financial institutions KW - Money KW - Debts, Public KW - Debts, External KW - Banks and banking KW - Fiscal policy KW - Foreign exchange reserves KW - Loans KW - Credit UR - https://www.unicat.be/uniCat?func=search&query=sysid:77996414 AB - KEY ISSUES Context: Over the last two decades, good governance and sound macroeconomic management have delivered remarkable economic and social progress to Cabo Verde. More recently, however, growth has slowed due to the prolonged downturn in Europe and a sharp deterioration in domestic confidence. A longer-term decline in the contribution of total factor productivity to growth may also have played a role. Financial stability risks have increased with the rise in non-performing loans and fall in bank profitability. The country remains vulnerable to external shocks, given its dependence on tourism, remittances, and concessional financing. Over the longer term, Cabo Verde’s challenge as a new middle-income country is to bolster productivity and diversify the sources of growth. Fiscal consolidation remains critical to safeguard macroeconomic and debt sustainability. Budgetary plans for 2014 and the medium term entail rising public debt, and are subject to downside risks to revenue. The authorities have already decided on a package of expenditure containment measures for 2014–17. However, given the high albeit sustainable level of public debt, further measures are needed to put public debt on a more robust downward path. Bolstering domestic revenue mobilization, increasing the efficiency of public investment, and managing existing infrastructure better are also central to sound public finances. International reserves have recovered, which provided room to ease monetary policy in support of the recovery. In the absence of imminent pressures on the balance of payments or on prices, and with private sector credit growth having stalled, the central bank has cut the policy rate. At the same time, given pressures on the banking system, continued vigilance regarding risks to financial stability is warranted. Structural reforms hold the key to bolstering competitiveness, creating jobs, and delivering inclusive growth. Increasing labor market efficiency and reducing skill mismatches would be particularly beneficial in this regard. Enhancing the efficiency of state-owned enterprises is also essential to improve delivery of infrastructure services. Data are adequate for surveillance purposes, though some key shortcomings remain. In particular, national accounts data are released with a long delay. This complicates the formulation of macroeconomic policies. ER -