The Cape Verdean economy has once again been given a positive evaluation by the International Monetary Fund, which has just concluded its most recent mission to Cape Verde. A satisfied Cristina Duarte, Cape Verde's Finance Minister, projected 6% to 7% growth for 2009.

Cape Verde has passed for the fifth consecutive time in the twice-yearly evaluation the IMF has been making of the country's economy since 2006 as a part of the Policy Support Instrument. After two weeks visiting the country, the international institution announced on Friday that it would be giving another positive evaluation to Cape Verde's macroeconomic development.

Commenting on the news, Cape Verde's Minister of Finances and Public Administration, Cristina Duarte, said that the performance of the national economy can be explained by domestic demand, the growth of internal credit and the proper management of public finances.

Apart from this, affirmed Duarte, the measures adopted by the government to confront the international crisis merited the "complete approval" of the IMF. Among these measures are the adjustment of customs tariffs for basic products, the containment of electricity and water prices, support for the more vulnerable portions of the population and the regularization of domestic fuel prices.

Crowning this positive portrait, the Minister of Finances announced the government's projections for growth of between 6 and 7 percent in 2009. "This is a prudent forecast, but the conditions are in place for this growth to happen, for in 2008 there has been an important increase in terms of the balance of trade."

Speaking to the press, IMF mission chief Lamin Leigh said that Cape Verde's main challenge now was to maintain the good macroeconomic performance that has allowed it to strengthen the credibility of its economic policies over the past several years.

In Leigh's opinion, Cape Verde should continue to "execute structural reforms to sustain the perspectives for growth in the mid-term, reduce poverty and increase the economy's resistance to external shocks. Indeed, the discussions of the fifth revision of the Policy Support Instrument were centered on the execution of the 2009 State Budget within the context o the current global economic challenges, the mid-term fiscal picture and the measures for the reinforcement of the management of public finances and debts."

The IMF mission also encouraged Cape Verdean authorities to continue their efforts towards making the economy more flexible and more resistant to foreign shocks. And, although it accepts the emergency measures aimed at rescuing beleaguered water and electricity utility Electra, the IMF advised the government not to generalize the practice of granting state subsidies.