The Government wants to recover tourism, lost by the pandemic of COVID-19, presenting itself abroad with a health security program, which is already being prepared.
“A country like Cape Verde must prepare, quickly, to adapt to the transformations already underway. It is, however, certain that rapid and profound transformations are always an opportunity offered to societies and countries ”, defended this Wednesday the deputy prime minister.
Olavo Correia warns that the COVID-19 pandemic will cause “a profound reorganization of the world economy”, and that for this reason the Government “is accelerating the steps in the elaboration of the Recovery Plan for the Cape Verdean Economy” for the post- COVID-19, in a vision until 2030.
About 25% of all the wealth produced annually in Cape Verde is dependent on tourism, but the archipelago has been closed to international flights since March, to contain the COVID-19 pandemic.
The statistical study of tourism in Cape Verde in 2019 confirmed in April that the Cape Verdean hotel units received 819,308 guests, an increase of 7% compared to 2018, and 5,117,403 overnight stays, a similar growth of 3.7%.
The latest forecast from the Government points to a revision of the State Budget for 2020 with a scenario of budget deficit that increases from 2 to 10% of GDP, with the corresponding “explosion” of public debt and an economic recession of 4 to 5% of the GDP, against the annual growth above 5% that was registered until now.
The Government’s staff is also composed of doubling unemployment, the rate of which may reach 20% and a drop of 18 billion escudos in public revenues.