CV growth down and inflation up, warns World Bank
The World Bank has revised down Cape Verde's economic growth forecast for 2026, from 5.2% to 4.8%, and predicts a rise in inflation to 3.2%, reflecting economic challenges in the PALOP region.
The biannual report on sub-Saharan Africa, released in Washington, indicates that the economic slowdown is affecting almost all Portuguese-speaking African countries, with the exception of Guinea-Bissau, which is expected to grow by 5.3%.
According to World Bank economists, the increase in inflation in Cape Verde, although lower than in other PALOP countries such as Angola (15%) or São Tomé and Príncipe (11%), could put pressure on consumers' purchasing power and require adjustments to economic policies.
Despite this scenario, Cape Verde stands out positively in terms of real per capita income. The country is expected to maintain a level at least 45% higher than that recorded in 2014, in contrast to other economies in the region facing significant falls, such as Angola, Equatorial Guinea, the Republic of Congo, South Sudan and Sudan, where per capita income fell by more than 25% compared to 2014. The World Bank explains that these nations are highly dependent on oil exports or affected by conflicts, factors that aggravate the economic slowdown and social vulnerability.
The World Bank attributes these trends to factors such as dependence on raw material exports, regional conflicts and the indirect effects of the war in the Middle East, which have put pressure on prices and hindered economic growth in the PALOPs.
On average, the region is expected to grow by 2% in 2026, less than half the average projected for sub-Saharan Africa (4.1%), indicating that economic challenges persist and that a continued public policy effort will be needed to underpin stability and sustainable development.
TN
