The Bank of Cape Verde forecast that the country’s economy will grow between 1 percent and 2 percent in 2014 and as much as 3 percent in 2015, reports local newspaper A Semana.

The forecast is included in the latest Monetary Policy Report by the central bank. The report points out that internal demand has increased over the past six months, supported by business public and foreign investment projects in the country.

That has offset a drop in public expenditure and weaknesses in the private sector, according to the report.

The Bank of Cape Verde added that the country’s monetary policy would remain stable over the coming months, supporting investment on new projects and ensuring that foreign reserves are kept at adequate levels to guarantee the country’s macroeconomic and financial stability.