The Cape Verdean Prime Minister declared, this Monday, the social and economic emergency in the country due to the impacts of the war in Ukraine, announcing more palliative measures, with a total cost of more than 80 million euros.
The situation is one of economic, social and humanitarian emergency in several countries of the world, particularly in the least developed countries. In Cape Verde, we feel the strong impacts on inflation, on the deterioration of the purchasing power of families, on food security and on the prospects for economic growth. These are the reasons for declaring a social and economic emergency in Cape Verde, as a result of the impacts of the war in Ukraine,” Ulisses Correia e Silva announced in a statement to the country.
The head of government said that the total cost of implementing measures to mitigate the effects of the food and energy crisis is 8,900 million escudos (80.7 million euros) at the end of this year.
The country is still going through a deep economic crisis, after a recession of almost 15% of the Gross Domestic Product (GDP) in 2020, due to the absence of tourism caused by the covid-19 pandemic, a sector that guarantees 25% of GDP and employment.
The Government of Cape Verde admits that the economy could have grown between 6.5 and 7.5% in 2021, driven by the recovery in tourism demandand forecasts a growth of 6% in 2022, which has been revised to 4% due to the economic consequences of the war in Ukraine.
Last week, the Bank of Cape Verde (BCV) announced the downward revision and moderation of economic growth for 2022 in the range of 3.5% to 4.5%, justified by the conflict in Ukraine and the tension geopolitics.
Source: Observadora
