According to report from the World Bank (WB), Cape Verde's economy may achieve an average growth of 5.1% between 2021 and 2023. The fact is due, advances the report, to the recovery of tourism flows in the last quarter. 

The WB report says that Cape Verde will "gradually begin to recover" from the effects of the pandemic, which "placed 100,000 people in temporary poverty."

This month's WB report, states that the economic crisis caused by Covid-19 in the archipelago has "reversed the progress in poverty reduction achieved since 2015." 

"However, the outlook is uncertain, with substantial downside risks. Uncertainties about the duration of the pandemic, including the emergence of new variants and the speed of global recovery, particularly in Europe, cast a shadow over the medium-term outlook," the report notes.

As a "result of the dramatic reduction in tax revenues due to the covid-19 crisis," both Cape Verde's fiscal deficit and financing needs "have increased substantially in 2020," the document reads. 

"The already weak financial performance of the State Business Sector was hit hard by the crisis, requiring emergency fiscal support and exacerbating already high fiscal risks. Recent gains in reducing the public debt burden were reversed in 2020."

The WB also notes that economic activity in Cape Verde contracted by 14.8% in 2020, compared to the previous year's GDP, translating into the "largest recession ever and the second largest in Sub-Saharan Africa."