The governor of Cape Verdes central bank admitted today that the countrys economy had cooled somewhat, but even so predicted that growth for 2009 would stand at approximately 5%. Inflation, which has slowed considerably in recent months, is expected to be below 2%. The Bank of Cape Verdes semester report, which was submitted to the government this week, also reveals "an accentuated aggravation of the current accounts deficit."

The Bank of Cape Verde believes that the Cape Verdean economy could grow by between 4.7% and 5.7% this year, with inflation expected to remain below 2%, far below the 8% registered last year. In the foreign sector, the Bank of Cape Verde registered an "accentuated aggravation of the current accounts deficit," as a result of the reduction of the influx of foreign capital, particularly of direct foreign investment.

These and other facts are a part of the central banks semester report on monetary policy, submitted this week to the government. Speaking to the press this morning, Bank of Cape Verde governor Carlos Burgo highlighted the behavior of the countrys foreign reserves. According to Burgo, despite the financial and economic crisis assailing the countries hosting the largest Cape Verdean communities abroad, the indicator "continues to behave well," representing 4.3 months of imports. In this case, remittances from Cape Verdean émigrés and the resources mobilized by the government abroad are considered the main reasons. The financial sector has also proven rather healthy, with banks continuing to register "excess liquidity."

In Burgos view, the Cape Verdean economy is proving to be "resilient" in the face of external shocks. "But this is not a coincidence. There is a role that must be acknowledged, which is that of the proper management of public accounts, of the countrys external accounts and of the proper policies that have been implemented by the government," affirms the central bank governor.