Cape Verde: Economic Outline

Economic Indicators

With an average yearly growth of more than 6% during the decade preceding the global economic crisis, Cape Verde showed consistently good economic performance. After falling 3% in 2009 due to the effects of the global crisis, the country resumed growth, reaching 4.1% in 2011. According to estimates, this trend should continue in 2011. The economic growth of Cape Verde is drawn by the income generated from tourism, and maintained by the international aid and the transfers of the immigrants.

The ambitious objective of the government is to make of Cape Verde an international trade center and service provider, a regional financial place and a recreational center. The main challenges that the country must overcome are its debt and the improvement of its tax system. THe IMF has approved an accord in 2010 as a means of supporting economic policy. In order to consolidate economic stability and ensure strong growth, the program consists namely in a careful management of hte public debt through eliminating non-priority spending, supporting welfare measures to help the most vulnerage parts of the population and a strenghtening of the banking system.

Cap Verde has recently been reclassified, from the least developed countries to middle-income countries. Despite the good economic results, poverty affects a large part of the population of Cape Verde and unemployment is over 25% of its active population, representing almost a third of young workers.

Main Indicators	2009	2010	2011	2012 (e)	2013 (e)
GDP (billions USD)	1.61e	1.67e	1.94e	2.14	2.32
GDP (Constant Prices, Annual % Change)	3.7e	5.4e	5.6e	6.4	6.2
GDP per Capita (USD)	3,175	3,247e	3,737e	4,053	4,335
General Government Gross Debt (in % of GDP)	68.6	73.2e	73.9e	78.3	80.2
Inflation Rate (%)	1.0	2.1	5.0e	4.9	3.1
Current Account (billions USD)	-0.24	-0.19	-0.25	-0.25	-0.25
Current Account (in % of GDP)	-15.2e	-11.2e	-12.9	-10.6	-

Source: IMF - World Economic Outlook Database - Last Available Data.

Note: (e) Estimated Data

Monetary Indicators	2008	2009	2010
Foreign Debt (million USD)	625	707	-
Cape Verde Escudo (CVE) - Average Annual Exchange Rate For 1 USD	75.28	79.38	83.26

Source: World Bank - Last Available Data.

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Main Sectors of Industry

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	-	-	-
Value Added (in % of GDP)	8.9	19.7	71.4
Value Added (Annual % Change)	4.4	11.2	1.1