Cape Verde - Economic development

The development plan adopted in 1991 sought to transform Cape Verde into an open-market style economy. The development priorities include the promotion of the service-sector industries such as tourism, fishing, maritime services, and transshipping. In 1994, the government announced a five-year plan to develop the fishing industry, focusing mostly on lobster and tuna. A free-trade port was projected, and offshore banking was planned. In 1997, the government adopted a four-year development plan that focused on debt management and sustainable development. Cape Verde entered into an $11 million three-year Poverty Reduction and Growth Facility (PRGF) Arrangement with the International Monetary Fund (IMF) in April 2002. Economic growth and international reserves increased in 2002, and inflation fell. The fiscal deficit was lower than expected, the balance of payments was stronger, and investment increased. The government that came into office in 2001 focused on implementing tight monetary policies and improving the social and economic infrastructure. A new tax package was scheduled to be implemented in 2003.

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