Cabo Verde

ECONOMICS

Cabo Verde’s economy depends on development aid, foreign investment, remittances, and tourism. The economy is service-oriented with commerce, transport, tourism, and public services accounting for about three-fourths of GDP. Tourism is the mainstay of the economy and depends on conditions in the euro-zone countries. Cabo Verde annually runs a high trade deficit financed by foreign aid and remittances from its large pool of emigrants; remittances as a share of GDP are one of the highest in Sub-Saharan Africa.

Although about 40% of the population lives in rural areas, the share of food production in GDP is low. The island economy suffers from a poor natural resource base, including serious water shortages, exacerbated by cycles of long-term drought, and poor soil for growing food on several of the islands, requiring it to import most of what it consumes. The fishing potential, mostly lobster and tuna, is not fully exploited.

Economic reforms are aimed at developing the private sector and attracting foreign investment to diversify the economy and mitigate high unemployment. The government’s elevated debt levels have limited its capacity to finance any shortfalls.

 

 

 

1990 2000 2010 18-Feb
GNI, Atlas method (current US$) (billions) 0.3 0.6 1.67 1.85
GNI per capita, Atlas method (current US$) 900 1,410 3,400 3,400
GNI, PPP (current international $) (billions) 0.36 1.27 2.68 3.73
GNI per capita, PPP (current international $) 1,070 2,960 5,440 6,860
GDP (current US$) (billions) 0.31 0.54 1.66 1.97
GDP growth (annual %) 0.7 14.3 1.5 4.5
Inflation, GDP deflator (annual %) 2.3 -7.9 0.5 1.5
Agriculture, forestry, and fishing, value added (% of GDP) 14 13 8 5
Industry (including construction), value added (% of GDP) 30 22 18 19
Exports of goods and services (% of GDP) 17 27 33 49
Imports of goods and services (% of GDP) 69 61 62 68
Gross capital formation (% of GDP) .. .. 48 39
Revenue, excluding grants (% of GDP) .. .. 26.4 28.8
Net lending (+) / net borrowing (-) (% of GDP) .. .. .. ..
States and markets
Time required to start a business (days) .. .. 18 18
Domestic credit provided by financial sector (% of GDP) .. .. .. ..
Tax revenue (% of GDP) .. .. 18.4 20.1
Military expenditure (% of GDP) 1 1.2 0.5 0.6
Mobile cellular subscriptions (per 100 people) 0 4.6 75.5 112.2
Individuals using the Internet (% of population) 0 1.8 30 57.2
High-technology exports (% of manufactured exports) .. .. 1 0
Statistical Capacity score (Overall average) .. .. 73 71
Global links
Merchandise trade (% of GDP) 46 45 47 45
Net barter terms of trade index (2000 = 100) 100 100 108 110
External debt stocks, total (DOD, current US$) (millions) 134 320 892 1,735
Total debt service (% of exports of goods, services and primary income) 9.1 11.1 5.6 5.6
Net migration (thousands) -6 -10 -8 ..
Personal remittances, received (current US$) (millions) 59 90 131 233
Foreign direct investment, net inflows (BoP, current US$) (millions) 0 34 116 108
Net official development assistance received (current US$) (millions) 105.3 94.7 327 83.2