Economy Overview
Cabo Verde’s economy is vulnerable to external shocks and 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. 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. 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. 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.
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
2.6% (2014 est.)
Labor Force
196,100 (2007 est.)
Unemployment Rate
16.4% (2013 est.)
Population Below Poverty Line
30% (2000 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: 1.9%
Highest 10%: 40.6% (2000)
Budget
Revenues: $426 million
Expenditures: $567.6 million (2014 est.)
Public Debt
100.7% of GDP (2013 est.)
Central Bank Discount Rate
7.5% (31 December 2009)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$597.6 million (31 December 2013 est.)
Stock of Broad Money
$1.7 billion (31 December 2013 est.)
Stock of Domestic Credit
$1.616 billion (31 December 2013 est.)
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
$510.9 million (31 December 2014 est.)
Debt External
$1.484 billion (31 December 2013 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
83.259 (2010 est.)
