Cabo Verde: 2025 Article IV Consultation, Seventh Review Under the Extended Credit Facility Arrangement, and Third Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde

This paper presents Cabo Verde’s 2025 Article IV Consultation, Seventh Review under the Extended Credit Facility (ECF) Arrangement, and Third Review under the Resilience and Sustainability Facility (RSF) Arrangement. The economy of Cabo Verde has been growing at a fast pace over the last four years. The authorities have maintained macroeconomic stability and advanced reforms, though climate risks, state-owned enterprises pressures, and global uncertainties remain. Economic conditions remain favorable, with continued robust growth and macrofinancial stability. Real gross domestic product growth was 7.2 percent in 2024 and is estimated to have reached 5.2 percent in 2025, converging to potential growth over the medium term. Program performance remains strong. All end-June 2025 quantitative performance criteria (PCs), continuous PCs and Indicative Targets (ITs) were met, except the September 2025 IT on social spending. The structural reform agenda is advancing, with two out of the three Reform Measures for the third RSF arrangement review completed and amendments to the Banco de Cabo Verde Organic Law were passed, an important governance reform.