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 birthrate. 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 GNP is only 14%, 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 1997 depend heavily on the maintenance of aid flows, remittances, and the momentum of the government's development program.
GDP: purchasing power parity - $472 million (1995 est.)
GDP - real growth rate: 4.7% (1995 est.)
GDP - per capita: purchasing power parity - $1,000 (1995 est.)
GDP - composition by sector: agriculture : 14% industry: 17% services: 69% (1992 est.)
Inflation rate - consumer price index: 7.8% (1995)
Labor force: NA
Unemployment rate: NA %
Budget: revenues: $253.7 million expenditures: $276 million (FY96/97 est.)
Industries: fish processing, salt mining, garments, ship repair, food and beverages