The Deputy Prime Minister of Cape Verde, Olavo Correia, yesterday rejected changing the forecasts that are included in the draft state budget for 2023, despite the optimism regarding the growth indicators for this year.
“For an unpredictable, uncertain and insecure economic scenario, all moderation, all caution, is recommended. Therefore, because we have moderate optimism about the future, we cannot spend in advance what we do not have,” said Olavo Correia, who is also Finance Minister, during the special discussion of the budget proposal in parliament.
The State Budget bill for 2023 is valued at 77.9 billion escudos (712 million euros), includes the increase of the lowest salaries in the Public Administration and foresees an economic growth of 4.8% of the Cape Verdean Gross Domestic Product (GDP) and an inflation rate of less than 4%, against the 8% expected for this year.
“There is no change to be made in relation to the State Budget proposal regarding provisions, we will follow the evolution of the economy and the Budget and in the framework of the budget execution we can take new measures depending on the evolution of the external economic framework and the internal economic framework,” Olavo Correia admitted.
The Cape Verdean government earlier this month strongly increased the economic growth forecast for this year, which due to the war in Ukraine had been lowered to 4% and may now reach 12%.