Cabo Verde’s economic climate indicator exceeded its long-run series average in the second quarter of 2026, posting a higher reading than the same period of 2025 and pointing to a favourable business environment, the National Statistics Institute (INE) announced on Wednesday.
According to INE, as cited by Lusa, the positive assessment reflects the views of business owners across retail trade, tourism, construction, market trade, manufacturing, and transport and auxiliary transport services.
Compared with the first quarter of 2026, however, the economic climate indicator maintained a downward trend, signalling a moderation in the pace of economic growth.
In retail trade, the confidence indicator remained above the series average and matched the reading recorded in the same quarter a year earlier, indicating a favourable environment, although the declining trend observed in recent quarters persisted.
Business owners identified difficulty in finding qualified staff, stock shortages, and absenteeism as the main constraints on activity.
In tourism, the confidence indicator remained above the series average but came in below the level recorded in the second quarter of 2025, with overall conditions still assessed as favourable. Insufficient demand and difficulty in sourcing trained personnel were cited as the principal obstacles, with financial difficulties also mentioned.
In construction, the confidence indicator continued its downward trend from the previous quarter but held above the series average, reflecting a favourable environment.
Absenteeism, other unspecified factors, and deteriorating sales prospects were flagged as the main constraints. Entrepreneurs also pointed to elevated interest rates and difficulties in accessing credit.
In market trade, the confidence indicator declined compared with the same period of 2025, though it remained above the series average, translating into a favourable overall assessment.
In manufacturing, the confidence indicator extended its upward trend of recent quarters and stayed above the series average, signalling a favourable environment.
The main difficulties cited by business owners were frequent mechanical breakdowns, high absenteeism, and a shortage of labour, with insufficient equipment also noted.
“According to INE, the favourable assessment reflects the views of business owners in retail trade, tourism, construction, market trade, manufacturing, and transport and auxiliary transport services.”
In transport and auxiliary transport services, the confidence indicator reversed its recent upward trend but remained above the series average, pointing to a favourable environment.
Competition, difficulty in finding qualified staff, and state regulations were identified as the sector’s main obstacles, with insufficient demand also cited.
The Economic Climate Indicator is calculated on the basis of a survey of business owners covering their companies’ general situation, the performance of key variables, and their expectations for future activity.
Tourism has been the engine of Cabo Verde’s economy, supported by an expansion in air routes connecting the archipelago to Europe that has provided knock-on stimulus to other sectors of activity.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=529860
