OVERVIEW: The ruling party, Partido Africano da Independencia de Cabo Verde, is expected to remain firmly in power. Real GDP growth is expected to accelerate from an estimated 6.7% in 2007 to 7.5% in 2008 and 8% in 2009, supported by high inflows of foreign direct investment in the tourism and construction sectors. We expect that average inflation will fall from an estimated 4.4% in 2007 to 4% in 2008 and 3% in 2009, as the Banco de Cabo Verde (BCV, the central bank) will maintain tight control over monetary aggregates and actively intervene to absorb excess liquidity.

Source: Cape Verde: Country outlook