Cape Verde:

Country Economic Overview

An overview of the Cape verdean economy

Contents

An Overview of the Economy

Cape Verde is a country which suffers from a shortage of natural resources due to limited rainfall. As a result, around 90% of the country's food is imported making it more expensive. The fishing business in Cape Verde is stable and accounted for about 1.5% of the country's GDP in 2004 but it has started to rise slightly and is expected to continue. There have been some rumours that Cape Verde is planning to join the EU which would facilitate the purchase process for foreign investors. Its currency, the Escudo, has been pegged to the Euro since 1999, maintaining low inflation and strengthening its cause for EU accession.

Satistics  
GDP (PPP) (IMF) (US$Billions) 1.6
GDP (PPP) (CIA) (US$Billions) 1.6
GDP Growth (IMF) (%) 6.9%
GDP Growth (CIA) (%) 6.9%
GDP Per Capita (PPP) (IMF) (US$) 3,243
GDP Per Capita (PPP) (CIA) (US$) 3,200
GDP by Sector (%) Agriculture: 9.3%
Services: 73.9%
Industry: 16.9%
Inflation (%) 4.4%
Population Below the Poverty Line(%) 30%
Labour Force (Millions) 0.1
Unemployment (%) 21%
Main Industries Food and beverages, fish processing,
shoes and garments, salt mining, ship repair.
Source: CIA World Factbook

GDP

econmic indicators 2003 2004 2005 2006 2007
GDP (US$Billions) 1.1 1.1 1.3 1.5 1.6
GDP Growth (%) 4.7% 4.4% 5.6% 10.8% 6.9%
GDP Per Capita (US$) 1,774 1,979 2,098 2,424 2,890
GDP Per Capita (PPP) (US$) 2,420 2,372 2,683 3,010 3,243
Inflation (%) 1.2% -1.9% 0.4% 5.4% 4.4%
Mobile Phone Users 28,119 53,300 53,300 81,700 108,900
Internet Users 12,000 20,400 20,400 25,000 29,000
Sources: IMF, CIA World Factbook

Major Exports & Imports

Cape Verde relies heavily on its imports and exports for economic growth and as a result, the government is aiming to attract more foreign investment. It costs Cape Verde more money to import goods than to export but the country needs the imports to survive.

major exports 2007

Fuel, shoes, garments, fish, hides.

major imports 2007

Foodstuffs, industrial products, transport equipment, fuels.

export partners % of total
Spain 44.2%
Portugal 21.7%
Netherlands 12.6%
Morocco 4.6%
import partners % of total
Portugal 41.1%
Netherlands 10.6%
Spain 6.5%
Italy 5.4%
Côte d'Ivoire 5.2%
Brazil 4.8%
Source: CIA World Factbook Top

Cape Verde Country Guide

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