Economy - overview Cape Verde 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, and public services accounting for 70% of GDP. Although nearly 70% of the population lives in rural areas, the share of agriculture in GDP in 2001 was only 11%, of which fishing accounts 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, 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 2002 depend heavily on the maintenance of aid flows, remittances, and the momentum of the government's development program.

GDP purchasing power parity - $600 million (2001 est.)

GDP - real growth rate 3% (2001 est.)

GDP - per capita purchasing power parity - $1,500 (2001 est.)

GDP - composition by sector
agriculture: 11%
industry: 17%
services: 72% (2001)

Population below poverty line 30% (2000)

Household income or consumption by percentage share
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices) 3% (2001)

Labor force NA

Unemployment rate 21% (2000 est.)

Budget
revenues: $112 million
expenditures: $198 million, including capital expenditures of $NA (2000)

Industries food and beverages, fish processing, shoes and garments, salt mining, ship repair

Industrial production growth rate NA%

Electricity - production 41 million kWh (2000)

Electricity - production by source
fossil fuel: 100%
hydro: 0%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 38.13 million kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 0 kWh (2000)

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

Exports $27.3 million (f.o.b., 2001 est.)

Exports - commodities fuel, shoes, garments, fish, hides

Exports - partners Portugal 45%, UK 20%, Germany 20%, Guinea-Bissau 5% (1999)

Imports $218 million (f.o.b., 2001 est.)

Imports - commodities foodstuffs, industrial products, transport equipment, fuels

Imports - partners Portugal 52%, Germany 7%, France 4%, UK 3% (1999)

Debt - external $301 million (2000)

Economic aid - recipient $136 million (1999)

Currency Cape Verdean escudo (CVE)

Currency code CVE

Exchange rates Cape Verdean escudos per US dollar - 123.556 (January 2002), 115.877 (2000), 102.700 (1999), 98.158 (1998), 93.177 (1997)

Fiscal year calendar year

NOTE: The information regarding Cape Verde on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Cape Verde Economy 2002 information contained here. All suggestions for corrections of any errors about Cape Verde Economy 2002 should be addressed to the CIA.