Cape Verde Economy Profile 2000

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 2000 depend heavily on the maintenance of aid flows, remittances, and the momentum of the government's development program.

GDP (purchasing power parity)

purchasing power parity - $618 million (1999 est.)

GDP - real growth rate

5% (1999 est.)

GDP - per capita (PPP)

purchasing power parity - $1,500 (1999 est.)

GDP - composition by sector

agriculture:13%
industry:19%
services:68% (1998)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%:NA%
highest 10%:NA%

Inflation rate (consumer prices)

5% (1999)

Labor force

NA

Unemployment rate

NA%

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

Industrial production growth rate

NA%

Electricity - production

40 million kWh (1998)

Electricity - production by source

fossil fuel:100%
hydro:0%
nuclear:0%
other:0% (1998)

Electricity - consumption

37 million kWh (1998)

Electricity - exports

0 kWh (1998)

Electricity - imports

0 kWh (1998)

Agriculture - products

bananas, corn, beans, sweet potatoes, sugarcane, coffee, peanuts; fish

Exports

$38 million (f.o.b., 1999 est.)

Exports - commodities

fuel, shoes, garments, fish, bananas, hides

Exports - partners

Portugal, Germany, Spain, France, UK, Malaysia

Imports

$225 million (f.o.b., 1999 est.)

Imports - commodities

foodstuffs, industrial products, transport equipment, fuels

Imports - partners

Portugal, Netherlands, France, UK, Spain, US

Debt - external

$220 million (1998)

Economic aid - recipient

$111.3 million (1995)

Currency

1 Cape Verdean escudo (CVEsc) = 100 centavos

Exchange rates

Cape Verdean escudos (CVEsc) per US$1 - 107.280 (December 1999), 102.700 (1999), 98.158 (1998), 93.177 (1997), 82.591 (1996), 76.853 (1995)

Fiscal year

calendar year