Cabo Verde : 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde

Cabo Verde appears to be at the onset of a recovery from the growth slowdown of 2012–15. However, the economy remains vulnerable to external shocks notably from Europe, the main source of tourism revenue, FDI and remittances. The Public Investment Program, while addressing key infrastructure gaps, has contributed to a marked rise in public debt (125.8 percent of GDP in 2015). The Debt Sustainability Analysis indicates that debt risks are high on account of the elevated stock of debt, while debt service indicators remain comfortable.