In 2017, the national economy strengthened the dynamism seen in 2016. The improved performance of the Cape Verdean economy, which grew 3.9 percent in volume (3.8 percent in 2016), was favored by the continued recovery of the country’s partner economies and their labor markets, as well as fiscal (especially through public investments and increased staff costs, with a significant multiplier effect) and monetary impulses (as a result of reinforced measures aimed at easing monetary policy in June).
The performance of the national economy in 2017 suggests that it is recovering. Nonetheless, the strengthening of its productive capacity and resilience to exogenous shocks (in particular to Europe’s economic cycles), a necessary condition for reaching well-being levels, challenges the policy authorities to properly design and efficiently implement a framework of structural reforms.
The latter should aim at fiscal consolidation in order to create space for anti-cyclical policies, and expansion of the economy's growth potential, through reduction of business investment risks and costs, strengthening of the financial system’s soundness and development, and adaptation of skills (academic and professional) so as to maximize employability and the total productivity of production factors.