Economy - overview Cape Verde's low per capita GDP reflects a poor natural resource base, serious water shortages exacerbated by cycles of long-term drought, and a high birth rate. 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 1995 was only 8%, 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 1998 depend heavily on the maintenance of aid flows, remittances, and the momentum of the government's development program.

GDP purchasing power parity - $538 million (1997 est.)

GDP - real growth rate 4.5% (1997 est.)

GDP - per capita purchasing power parity - $1,370 (1997 est.)

GDP - composition by sector
agriculture: 8%
industry: 18%
services: 74% (1996 est.)

Inflation rate - consumer price index 6.2% (1996)

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 - capacity 7,000 kW (1995)

Electricity - production 40 million kWh (1995)

Electricity - consumption per capita 92 kWh (1995)

Agriculture - products bananas, corn, beans, sweet potatoes, sugarcane, coffee, peanuts; fish

Exports
total value: $12.8 million (f.o.b., 1996 est.)
commodities: shoes, garments, fish, bananas, hides,
partners: Portugal, Spain, France, UK

Imports
total value: $237 million (f.o.b., 1996 est.)
commodities: foodstuffs, consumer goods, industrial products, transport equipment, fuels
partners: Portugal 41%, Netherlands, France, Spain, US

Debt - external $202 million (1996)

Economic aid
recipient: ODA, $70 million (1995)

Currency 1 Cape Verdean escudo (CVEsc) = 100 centavos

Exchange rates Cape Verdean escudos (CVEsc) per US$1 - 95.400 (December 1997), 93.177 (1997), 82.591 (1996), 76.853 (1995), 81.891 (1994), 80.427 (1993)

Fiscal year calendar year

NOTE: The information regarding Cape Verde on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Cape Verde Economy 1998 information contained here. All suggestions for corrections of any errors about Cape Verde Economy 1998 should be addressed to the CIA.