Economy of Cape Verde
| Economy - overview: | This island economy suffers from a poor natural resource base, including serious water shortages exacerbated by cycles of long-term drought. The economy is service-oriented, with commerce, transport, tourism, and public services accounting for 66% of GDP. Although nearly 70% of the population lives in rural areas, the share of food production in GDP in 2004 was only 12%, of which fishing accounted for 1.5%. About 82% 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 supplement GDP by more than 20%. Economic reforms are aimed at developing the private sector and attracting foreign investment to diversify the economy. Future prospects depend heavily on the maintenance of aid flows, the encouragement of tourism, remittances, and the momentum of the government's development program. Cape Verde has been exploring European Union membership in recent years. |
| GDP (purchasing power parity): | $3.129 billion (2006 est.) |
| GDP (official exchange rate): | $1.128 billion (2005 est.) |
| GDP - real growth rate: | 5.5% (2005 est.) |
| GDP - per capita (PPP): | $6,000 (2006 est.) |
| GDP - composition by sector: | agriculture: 12.1% industry: 21.9% services: 66% (2004 est.) |
| Labor force: | 120,600 (1990) |
| Unemployment rate: | 21% (2000 est.) |
| Population below poverty line: | 30% (2000) |
| Household income or consumption by percentage share: | lowest 10%: NA% highest 10%: NA% |
| Inflation rate (consumer prices): | 4.7% (2006 est.) |
| Investment (gross fixed): | 25.5% of GDP (2006 est.) |
| Budget: | revenues: $324.6 million expenditures: $370.4 million; including capital expenditures of $NA (2006 est.) |
| 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: | NA% |
| Electricity - production: | 44 million kWh (2004) |
| Electricity - production by source: | fossil fuel: 100% hydro: 0% nuclear: 0% other: 0% (2001) |
| Electricity - consumption: | 40.92 million kWh (2004) |
| Electricity - exports: | 0 kWh (2004) |
| Electricity - imports: | 0 kWh (2004) |
| Oil - production: | 0 bbl/day (2004) |
| Oil - consumption: | 1,150 bbl/day (2004 est.) |
| Oil - exports: | NA bbl/day |
| Oil - imports: | NA bbl/day |
| Oil - proved reserves: | 0 bbl |
| Natural gas - production: | 0 cu m (2004 est.) |
| Natural gas - consumption: | 0 cu m (2004 est.) |
| Current account balance: | -$44.43 million (2006 est.) |
| Exports: | $96.71 million f.o.b. (2006 est.) |
| Exports - commodities: | fuel, shoes, garments, fish, hides |
| Exports - partners: | Spain 45.2%, Portugal 22.9%, Netherlands 13.3%, Morocco 4.9% (2006) |
| Imports: | $495.1 million f.o.b. (2006 est.) |
| Imports - commodities: | foodstuffs, industrial products, transport equipment, fuels |
| Imports - partners: | Portugal 40.8%, Netherlands 10.5%, Spain 6.2%, Italy 5.5%, Cote d'Ivoire 5.2%, Brazil 5.1% (2006) |
| Reserves of foreign exchange and gold: | $166.4 million (2006 est.) |
| Debt - external: | $325 million (2002) |
| Economic aid - recipient: | $136 million (1999) |
| Currency (code): | Cape Verdean escudo (CVE) |
| Currency code: | CVE |
| Exchange rates: | Cape Verdean escudos (CVE) per US dollar - 87.946 (2006), 88.67 (2005), 88.808 (2004), 97.703 (2003), 117.168 (2002) |
| Fiscal year: | calendar year |