Economy of Cape Verde

Mother Earth Travel > Country Index > Cape Verde Map Economy History

Economy - overview: Cape Verde's low per capita GDP reflects a poor natural resource base, including serious water shortages exacerbated by cycles of long-term drought. The economy is service-oriented, with commerce, transport, and public services accounting for almost 70% of GDP. Although nearly 70% of the population lives in rural areas, the share of agriculture in GDP in 1998 was only 13%, of which fishing accounts for 1.5%. About 90% 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 constitute a supplement to GDP of more than 20%. Economic reforms, launched by the new democratic government in 1991, are aimed at developing the private sector and attracting foreign investment to diversify the economy. Prospects for 2001 depend heavily on the maintenance of aid flows, remittances, and the momentum of the government's development program.

GDP: purchasing power parity - $670 million (2000 est.)
GDP - real growth rate: 5% (1999 est.), 6% (2000 est.)
GDP - per capita: purchasing power parity - $1,700 (2000 est.)
GDP - composition by sector:
agriculture: 13%
industry: 19%
services: 68% (1998)
Inflation rate (consumer prices): 5% (1999), 4% (2000)
Unemployment rate: 24% (1999 est.)
Budget:
revenues: $188 million
expenditures: $228 million, including capital expenditures of $116 million (1996)
Industries: food and beverages, fish processing, shoes and garments, salt mining, ship repair
Electricity - production: 40 million kWh (1999)
Electricity - production by source:
fossil fuel:  100%
hydro:  0%
nuclear:  0%
other:  0% (1999)
Electricity - consumption: 37.2 million kWh (1999)
Electricity - exports: 0 kWh (1999)
Electricity - imports: 0 kWh (1999)
Agriculture - products: bananas, corn, beans, sweet potatoes, sugarcane, coffee, peanuts; fish
Exports: $40 million (f.o.b., 2000 est.)
Exports - commodities: fuel, shoes, garments, fish, bananas, hides
Exports - partners: Portugal, Germany, Spain, France, United Kingdom, Malaysia
Imports: $250 million (f.o.b., 2000 est.)
Imports - commodities: foodstuffs, industrial products, transport equipment, fuels
Imports - partners: Portugal, Netherlands, France, United Kingdom, Spain, United States
Debt - external: $260 million (2000)
Economic aid - recipient: $111.3 million (1995)
Currency: Cape Verdean escudo (CVE)

SOURCE: The World Factbook

Mother Earth Travel > Country Index > Cape Verde Map Economy History