Praia, Jul 2 (Inforpress) – The Government forecasts a drop in tourist demand of 58 percent (%) in 2020, due to the impacts of the pandemic, also expecting that revenues in the sector will reduce by 61.6%.
This analysis is made in the proposal for an Amending Budget, assessing the current economic situation in the country and the prospects for the future.
According to the document, the national economy presented a “good performance” with a growth of 5.7% in 2019, although the “adverse international scenario” marked by the “trade war” and the slowdown of the largest world economies.
It stated that at the national level, despite the effects of drought, growth “was driven by the good performance of the secondary sectors” and services, with special emphasis on the transport sector with a growth of 10.0%.
However, it explains, the outbreak of the new coronavirus “further increased” the risk to the global economy, negatively affecting the prospects for economic growth in the world and in Cabo Verde.
In view of the scenario, the same source points out, Cabo Verde “was triple impacted”, the closure of borders, the declaration of a state of emergency and the increase in public health costs represent “simultaneous supply shocks”, culminating in a fall in the productivity of economy, as well as the “abrupt reduction” in demand and services.
HR / CP / HVF