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
agriculture in GDP in 2004 was only 12%, of which fishing accounted
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 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):
$2.99 billion (2005 est.)
GDP (official exchange rate):
$1.128 billion (2005 est.)
GDP - real growth rate:
5.5% (2005 est.)
GDP - per capita (PPP):
$6,200 (2005 est.)
GDP - composition by sector: agriculture: 12.1% industry: 21.9% services: 66% (2004 est.)
Labor force:
120,600
Unemployment rate:
21% (2000 est.)
Population below poverty line:
30% (2000)
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%