Provisional account for the first quarter of 2026 shows favourable trend in public finances

The Government of Cape Verde, through the Ministry of Finance, announces that the provisional government accounts for the first quarter of 2026 demonstrate the continued consolidation of public finances and the strengthening of fiscal sustainability.

During the period under review, despite challenging circumstances, the overall balance recorded a surplus of 0.41% of GDP, confirming the continued balance of public accounts and the government’s ability to manage its resources prudently.

The overall primary balance remained positive, standing at 2,556.9 million CVE (0.81% of GDP), whilst the primary current account balance reached 4,056.0 million CVE (1.21% of GDP), demonstrating the continued strength of the fiscal position and the generation of current savings to support the country’s strategic priorities.

Total revenue performed strongly, growing by 8.61% year-on-year, corresponding to an increase of 1,625.2 million CVE, driven primarily by a significant rise in tax revenue (+12.01% year-on-year), reflecting the dynamism of economic activity, the broadening of the tax base and the improved efficiency of the tax administration.

On the expenditure side, the 14.31% increase in current expenditure reflects increased funding for the State’s essential functions and public policies, whilst the 61.31% year-on-year growth in public investment and non-financial assets highlights the acceleration of investment in infrastructure and structural projects.

Also noteworthy is the sustained improvement in the public debt position, with the debt-to-GDP ratio standing at 93.31% in Q3, representing a reduction of 7.9 percentage points compared with the same period last year, consolidating the downward trend in debt and reinforcing the country’s macro-fiscal credibility.

The Provisional Accounts for the first quarter of 2026 are available for consultation on the Ministry of Finance’s website: https://www.mf.gov.cv/web/dnocp/contas-provis%C3%B3rias-do-estado/-/document_library/LbXpmIbuZxlI/view/6576055

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