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The Economy of Cape Verde

Cape Verdean Economy

Cape Verde's map

Economy - overview: This island economy suffers from a poor natural resource base, including serious water shortages exacerbated by cycles of long-term drought. The economy is service-oriented, with commerce, transport, tourism, and public services accounting for about three-fourths of GDP. Although nearly 70% of the population lives in rural areas, the share of food production in GDP is low. About 82% of food must be imported. The fishing potential, mostly lobster and tuna, is not fully exploited. Cape Verde annually runs a high trade deficit, financed by foreign aid and remittances from emigrants; remittances supplement GDP by more than 20%. Economic reforms are aimed at developing the private sector and attracting foreign investment to diversify the economy. Future prospects depend heavily on the maintenance of aid flows, the encouragement of tourism, remittances, and the momentum of the government's development program. Cape Verde became a member of the WTO in July 2008.

GDP:

GDP - real growth rate: 6% (2008 est.) 6.9% (2007 est.) 10.8% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 9% industry: 16.9% services: 74.1% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

Distribution of family income - Gini index:

Inflation rate (consumer prices):

Labor force: 120,600 (1990)

Labor force - by occupation:

Unemployment rate: 21% (2000 est.)

Budget: revenues: $525.4 million expenditures: $585.3 million (2008 est.)

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

Industrial production growth rate: 8% (2008 est.)

Electricity - production: 47 million kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 43.71 million kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 0 bbl/day (2007 est.)

Oil - consumption: 2,117 bbl/day (2006 est.)

Oil - exports: 0 bbl/day (2005)

Oil - imports: 1,785 bbl/day (2005)

Oil - proved reserves: 0 bbl (1 January 2006 est.)

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 0 cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 0 cu m (1 January 2006 est.)

Agriculture - products: bananas, corn, beans, sweet potatoes, sugarcane, coffee, peanuts; fish

Exports: $102 million f.o.b. (2008 est.)

Exports - commodities: fuel, shoes, garments, fish, hides

Exports - partners: Spain 37.2%, Portugal 29.9%, Morocco 7%, US 6.6% (2007)

Imports: $887 million f.o.b. (2008 est.)

Imports - commodities: foodstuffs, industrial products, transport equipment, fuels

Imports - partners: Portugal 40.7%, Netherlands 10.9%, France 6.5%, Spain 5.6%, Cote d'Ivoire 4.9%, Brazil 4.7%, Italy 4.7% (2007)

Debt - external: $325 million (2002)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Cape Verdean escudos (CVE) per US dollar - 73.84 (2008 est.), 81.235 (2007), 87.946 (2006), 88.67 (2005), 88.808 (2004)

Fiscal year: