Economy of Cape Verde Islands
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 66% of GDP. Although nearly 70% of the population lives in rural areas, the share of agriculture in GDP in 2004 was only 12%, of which fishing accounted for 1.5%. 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.
GDP
Real Growth Rate
6%
Per Capita
USD 6,200
From Agriculture
12%
From Industry
22%
From Services
66%
Labour Force
Available for Work
Unknown
Working in Agriculture
0%
Working in Industry
0%
Working in Services
0%
Unemployment Rate
0%
Population Below Poverty Line
30%
Inflation Rate
0%
Investment as Percent of GDP
25%
Budget
Revenues
USD 328 (m)
Expenditures
USD 393 (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Bananas, corn, beans, sweet potatoes, sugarcane, coffee, peanuts; fish
Core Industries
Food and beverages, fish processing, shoes and garments, salt mining, ship repair
Exports
Value
USD 73 (m)
Commodities
Fuel, shoes, garments, fish, hides
Partners
Spain 38.2%, Portugal 33.2%, US 9.2%, Morocco 5.4% (2005)
Imports
Value
USD 500 (m)
Commodities
Foodstuffs, industrial products, transport equipment, fuels
Partners
Portugal 41.5%, Italy 8%, Netherlands 7.3%, Spain 5.5%, France 4.8%, Belgium 4.7%, Brazil 4.3% (2005)
External Debt
USD 325 (m)
Fiscal Year
Calendar year
