Economy Overview
The economy is service-oriented with commerce, transport, tourism, and public services accounting for about three-fourths of GDP. This island economy suffers from a poor natural resource base, including serious water shortages exacerbated by cycles of long-term drought and poor soil for agriculture on several of the islands. Although about 40% 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. Cabo Verde annually runs a high trade deficit financed by foreign aid and remittances from its large pool of emigrants, remittances supplement GDP by more than 20%. Despite the lack of resources, sound economic management has produced steadily improving incomes. Continued economic reforms are aimed at developing the private sector and attracting foreign investment to diversify the economy and mitigate high unemployment. Future prospects depend heavily on the maintenance of aid flows, the encouragement of tourism, remittances, and the momentum of the government's development program. Cabo Verde became a member of the WTO in July 2008.
Agriculture Products
bananas, corn, beans, sweet potatoes, sugarcane, coffee, peanuts, fish
Industries
food and beverages, fish processing, shoes and garments, salt mining, ship repair
Industrial Production Growth Rate
-3% (2012 est.)country comparison to the world: 165
Labor Force
196,100 (2007)country comparison to the world: 171
Unemployment Rate
21% (2000 est.)country comparison to the world: 163
Population Below Poverty Line
30% (2000)
Household Income or Consumption by Percentage Share
Lowest 10%: 1.9%
Highest 10%: 40.6% (2000)
Budget
Revenues: $409 million
Expenditures: $625.7 million (2012 est.)
Public Debt
86.2% of GDP (2012 est.)country comparison to the world: 21 78.1% of GDP (2011 est.)
Central Bank Discount Rate
7.5% (31 December 2010 est.)country comparison to the world: 34 7.5% (31 December 2009 est.)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$490.5 million (31 December 2012 est.)country comparison to the world: 160 $459.2 million (31 December 2011 est.)
Stock of Broad Money
$1.362 billion (31 December 2012 est.)country comparison to the world: 160 $1.322 billion (31 December 2011 est.)
Stock of Domestic Credit
$1.496 billion (31 December 2012 est.)country comparison to the world: 143 $1.426 billion (31 December 2011 est.)
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
$376 million (31 December 2012 est.)country comparison to the world: 150 $339 million (31 December 2011 est.)
Debt External
$1.18 billion (31 December 2012 est.)country comparison to the world: 155 $1.025 billion (31 December 2011 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
Cabo Verdean escudos (CVE) per US dollar -85.82 (2012 est.) 79.32 (2011 est.) 83.26 (2010 est.) 79.38 (2009) 73.84 (2008)
