Economic 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 birthrate. The economy is service oriented, with commerce, transport, and public services accounting for 60% of GDP. Although nearly 70% of the population lives in rural areas, the share of agriculture in GNP is only 13%, of which fishing accounts for 4%. 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 remittances from emigrants and foreign aid, which form important supplements to GDP. 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 1996 depend heavily on the maintenance of aid flows, remittances, and the momentum of the government's development program.
GDP: purchasing power parity - $440 million (1994 est.)
GDP real growth rate: 4.6% (1994 est.)
GDP per capita: $1,040 (1994 est.)
GDP composition by sector: agriculture: 13% industry: 17% services: 70% (1992 est.)
Inflation rate (consumer prices): 5% (1994 est.)
Labor force: 102,000 (1985 est.) by occupation: agriculture (mostly subsistence) 57%, services 29%, industry 14% (1981)
Unemployment rate: 35% (1994 est.)
Budget:
revenues: $174 million
expenditures: $235 million, including capital expenditures of $165
million (1993 est.)
Industries: fish processing, salt mining, garments, ship repair,
food and beverages