Cabo Verde Economy
Is Cabo Verde a wealthy country?
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.
Cabo Verde Economy Data
What is the GDP of Cabo Verde?
| Currency Name and Code | Cabo Verdean escudos (CVE) |
| GDP - Gross Domestic Product (PPP) | $3,360,000,000 (USD) |
| GDP - official exchange rate | $1,684,000,000 (USD) |
| GDP - real growth rate | 3.6% |
| GDP Per Capita | $6,700.00 (USD) |
| GDP by Sector- agriculture | 7.4% |
| GDP by Sector- Industry | 16.4% |
| GDP by Sector- services | 76.2% |
| GDP - composition, by end use |
Household Consumption: 53.5% Government Consumption: 15.2% Investment in Fixed Capital: 33.2% Investment in Inventories: 0.8% Exports of Goods and Services: 32.9% Imports of Goods and Services: -35.6% |
| Population Below Poverty Line | 30% |
| Inflation Rate | 0.7% |
| Labor Force | 196,100 |
| Unemployment Rate | 12% |
| Fiscal Year | Calendar Year |
| Annual Budget | $405,700,000 (USD) |
| Budget Surplus or Deficit - percent of GDP | -4.3% |
| Public Debt (% of GDP) | 116.8% |
| Taxes and other revenues - percent of GDP | 24.1% |
| Major Industries | Food and beverages, fish processing, shoes and garments, salt mining, ship repair |
| Industrial Growth Rate | 1.9% |
| Agriculture Products | Bananas, corn, beans, sweet potatoes, sugarcane, coffee, peanuts; fish |
| Exchange Rate per US Dollar | 101.8 |
| Child Labor - % of children ages 5-14 | 3% |
| Child Labor - # of children ages 5-14 | 1,948 |
| Child Labor - note | note: data represents children ages 10-14 |
| Commercial Bank Prime Lending Rate | 10% |