Cape Verde Economy 2008

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 is low. 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.

GDP (purchasing power parity):
$3.709 billion (2007 est.)

GDP (official exchange rate):
$1.441 billion (2007 est.)

GDP - real growth rate:
7% (2007 est.)

GDP - per capita (PPP):
$7,000 (2007 est.)

GDP - composition by sector:
agriculture: 9.3%
industry: 16.9%
services: 73.9% (2007 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):
3% (2007 est.)

Investment (gross fixed):
36.9% of GDP (2007 est.)

Budget:
revenues: $444.7 million
expenditures: $496 million (2007 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:
9% (2007 est.)

Electricity - production:
45 million kWh (2005)

Electricity - consumption:
41.85 million kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
0 bbl/day (2005)

Oil - consumption:
2,000 bbl/day (2005 est.)

Oil - exports:
0 bbl/day (2004)

Oil - imports:
2,080 bbl/day (2004)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

natural gas - production:
0 cu m (2005 est.)

natural gas - consumption:
0 cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
0 cu m (1 January 2006 est.)

Current account balance:
-$218 million (2007 est.)

Exports:
$100.2 million f.o.b. (2007 est.)

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

Exports - partners:
Spain 43.3%, Portugal 21.9%, Netherlands 12.8%, Morocco 4.6% (2006)

Imports:
$727.1 million f.o.b. (2007 est.)

Imports - partners:
Portugal 41.2%, Netherlands 10.6%, Spain 6.2%, Italy 5.5%, Cote d'Ivoire 5.2%, Brazil 4.8% (2006)

Economic aid - recipient:
$160.6 million (2005)

Reserves of foreign exchange and gold:
$343.8 million (31 December 2007 est.)

Debt - external:
$325 million (2002)

Currency (code):
Cape Verdean escudo (CVE)

Exchange rates:
Cape Verdean escudos (CVE) per US dollar - 81.235 (2007), 87.946 (2006), 88.67 (2005), 88.808 (2004), 97.703 (2003)