Cabo Verde Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

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.

Real GDP (purchasing power parity)

$3.36 billion (2020 est.)

$3.94 billion (2019 est.)

$3.73 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

4% (2017 est.)

4.7% (2016 est.)

1% (2015 est.)

Real GDP per capita

$6,000 (2020 est.)

$7,200 (2019 est.)

$6,900 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$1.971 billion (2019 est.)

Inflation rate (consumer prices)

1.1% (2019 est.)

1.2% (2018 est.)

0.7% (2017 est.)

Credit ratings

Fitch rating: B- (2020)

Standard & Poors rating: B (2013)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 8.9% (2017 est.)

industry: 17.5% (2017 est.)

services: 73.7% (2017 est.)

GDP - composition, by end use

household consumption: 50.1% (2017 est.)

government consumption: 18.3% (2017 est.)

investment in fixed capital: 32.2% (2017 est.)

investment in inventories: 1.9% (2017 est.)

exports of goods and services: 48.6% (2017 est.)

imports of goods and services: -51.1% (2017 est.)

Agricultural products

sugar cane, tomatoes, bananas, cabbages, coconuts, cassava, pulses, vegetables, milk, goat milk

Industries

food and beverages, fish processing, shoes and garments, salt mining, ship repair

Industrial production growth rate

2.9% (2017 est.)

Labor force

196,100 (2007 est.)

Unemployment rate

9% (2017 est.)

9% (2016 est.)

Youth unemployment rate (ages 15-24)

total: 50.4%

male: 41.4%

female: 65.3% (2019)

Population below poverty line

35% (2015 est.)

Gini Index coefficient - distribution of family income

42.4 (2015 est.)

Household income or consumption by percentage share

lowest 10%: 1.9%

highest 10%: 40.6% (2000)

Budget

revenues: 493.5 million (2017 est.)

expenditures: 546.7 million (2017 est.)

Budget surplus (+) or deficit (-)

-3% (of GDP) (2017 est.)

Public debt

125.8% of GDP (2017 est.)

127.6% of GDP (2016 est.)

Taxes and other revenues

27.8% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$109 million (2017 est.)

-$40 million (2016 est.)

Exports

$420 million (2020 est.)

$1 billion (2019 est.)

$960 million (2018 est.)

note: Data are in current year dollars and do not include illicit exports or re-exports.

Exports - partners

Spain 65%, Portugal 14%, Italy 8% (2019)

Exports - commodities

processed and frozen fish, mollusks, clothing, scrap iron (2019)

Imports

$1.02 billion (2020 est.) note: data are in current year dollars

$1.29 billion (2019 est.) note: data are in current year dollars

$1.34 billion (2018 est.) note: data are in current year dollars

Imports - partners

Portugal 36%, Netherlands 16%, Spain 11%, China 6% (2019)

Imports - commodities

refined petroleum, delivery trucks, coal tar oil, cars, rice (2019)

Reserves of foreign exchange and gold

$617.4 million (31 December 2017 est.)

$572.7 million (31 December 2016 est.)

Debt - external

$1.713 billion (31 December 2017 est.)

$1.688 billion (31 December 2016 est.)

Exchange rates

Cabo Verdean escudos (CVE) per US dollar -

101.8 (2017 est.)

99.688 (2016 est.)

99.688 (2015 est.)

99.426 (2014 est.)

83.114 (2013 est.)

NOTE: The information regarding Cabo Verde on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Cabo Verde 2022 information contained here. All suggestions for corrections of any errors about Cabo Verde 2022 should be addressed to the CIA or the source cited on each page.