Overview: Cape Verde's low per capita GDP reflects a poor natural resource base, a serious, long-term drought, and a high birthrate. The economy is service oriented, with commerce, transport, and public services accounting for 60% of GDP. Although nearly 70% of the population lives in rural areas, agriculture's share of GDP is only 20%; the fishing sector accounts for 4%. About 90% of food must be imported. The fishing potential, mostly lobster and tuna, is not fully exploited. In 1988 fishing represented only 3.5% of GDP. Cape Verde annually runs a high trade deficit, financed by remittances from emigrants and foreign aid. Economic reforms launched by the new democratic government in February 1991 are aimed at developing the private sector and attracting foreign investment to diversify the economy.

National product: GDP - exchange rate conversion - $415 million (1991 est.)

National product real growth rate: 3.3% (1991 est.)

National product per capita: $1,070 (1991)

Inflation rate (consumer prices): 8.7% (1991 est.)

Unemployment rate: 25% (1988)

Budget:
revenues: $104 million
expenditures: $133 million, including capital expenditures of $72 million (1991 est.)

Exports: $6 million (f.o.b., 1990)
commodities: fish, bananas, hides and skins
partners: Portugal 40%, Algeria 31%, Angola, Netherlands (1990 est.)

Imports: $145 million (c.i.f., 1990)
commodities: foodstuffs, consumer goods, industrial products, transport equipment
partners: Sweden 33%, Spain 11%, Germany 5%, Portugal 3%, France 3%, Netherlands, US (1990 est.)

External debt: $156 million (1991)

Industrial production: growth rate 18% (1988 est.); accounts for 7% of GDP

Electricity:
capacity: 15,000 kW
production: 15 million kWh
consumption per capita: 40 kWh (1991)

Industries: fish processing, salt mining, clothing factories, ship repair, construction materials, food and beverage production

Agriculture: accounts for 20% of GDP (including fishing); largely subsistence farming; bananas are the only export crop; other crops - corn, beans, sweet potatoes, coffee; growth potential of agricultural sector limited by poor soils and scanty rainfall; annual food imports required; fish catch provides for both domestic consumption and small exports

Economic aid:
recipient: US commitments, including Ex-Im (FY75-90), $93 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-90), $586 million; OPEC bilateral aid (1979-89), $12 million; Communist countries (1970-89), $36 million

Currency: 1 Cape Verdean escudo (CVEsc) = 100 centavos
Exchange rates: Cape Verdean escudos (CVEsc) per US$1 - 85.992 (December 1993), 80.574 (1993), 68.018 (1992), 71.408 (1991), 70.031 (1990), 77.978 (1989)

Fiscal year: calendar year

NOTE: The information regarding Cape Verde on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Cape Verde Economy 1995 information contained here. All suggestions for corrections of any errors about Cape Verde Economy 1995 should be addressed to the CIA.