Analysis by Region - Emerging Markets - Cape Verde
Description
After a sound performance in 2024, we maintain our view that the post-pandemic recovery in tourism activity will taper off this year, with global headwinds exerting additional downward pressure on real GDP growth. Consumers in the island country's key tourism partners, the UK and Portugal, face lower disposable incomes in 2025 amid US tariff-related turmoil. The island economy has limited trade exposure to the US, mitigating the impact of its 10% tariff rate. Still, we expect real GDP growth to moderate to an upwardly revised 5.1% in 2025.
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