...Positive Outlook: Fitch Ratings revised the Outlook on Cabo Verde to Positive, from Stable, in April 2026. This reflects continued fiscal consolidation underpinned by revenue-mobilisation reforms, which Fitch expects will drive rapid government debt reduction over the forecast horizon. The revision also reflects a robust growth outlook, benefiting from the strength of the tourism sector that continues to support the country's external position. Policy Continuity Following Transition: The opposition PAICV won a parliamentary majority in May 2026, ending a decade of MpD rule. The new government has published a revised budget envisaging a slightly wider deficit. However, we do not expect the change in administration to affect policy trajectory significantly, reflecting strong institutions and a record of continuity across governments. The main medium-term policy risk remains the pace of state-owned enterprise (SOE) reform, where delays could raise contingent liability pressures. Contingent...
