Cape Verde: An African success story - Standard & Poor's

Cape Verde is “an African success story,” above all for the stability and running of its institutions, though also an economy very dependent on the outside world which means it will suffer from the current crisis, according to Standard & Poor's.

“Cape Verde’s political institutions and its stability are among the strongest in Africa and form a good foundation upon which to face the challenges of the economy’s imbalances. The authorities have been strong and consistent in carrying out economic reform, which has contributed to robust economic expansion over the last few years,” said the international credit rating agency in its most recent report on the archipelago, published March.

Levels of wealth, a measure of the capacity to absorb external shocks, are considered “relatively high,” with a “per capita” GDP in the region of US$3,485.

Stability and “high human development indicators,” as well as monetary “consistency,” related to the local currency's indexation to the Euro, as well as the improvement in tax management, all contributed to the rating given to Cape Verde's debt (B+ with the prospect of stability)

Opportunities for the archipelago come in the form of joining the World Trade Organization, and partnership with the European Union, important stimuli for the economy, and also the creation in Cape Verde of one of China’s free trade zones in Africa, which the rating agency considers to be a given.

Source: Macauhub 06/04/09

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