Cape Verde Economy - 2004

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 72% 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 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. Prospects for 2004 depend heavily on the maintenance of aid flows, tourism, remittances, and the momentum of the government's development program.

GDP:
purchasing power parity - $600 million (2002 est.)

GDP - real growth rate:
4% (2002 est.)

GDP - per capita:
purchasing power parity - $1,400 (2002 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% (2002)

Labor force:
NA (1980)

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:
42.03 million kWh (2001)

Electricity - production by source:
fossil fuel: 100%
hydro: 0%
other: 0% (2001)
nuclear: 0%

Electricity - consumption:
39.08 million kWh (2001)

Electricity - exports:
0 kWh (2001)

Electricity - imports:
0 kWh (2001)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
2,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

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

Exports:
$50.68 million f.o.b. (2003 est.)

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

Exports - partners:
Portugal 38.1%, France 23.8%, UK 23.8%, US 9.5% (2002)

Imports:
$315.5 million f.o.b. (2003 est.)

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

Imports - partners:
Portugal 47.7%, Netherlands 7.1%, Germany 5.6% (2002)

Debt - external:
$325 million (2002)

Economic aid - recipient:
$136 million (1999)

Currency:
Cape Verdean escudo (CVE)

Currency code:
CVE

Exchange rates:
Cape Verdean escudos (CVE) per US dollar - 97.7 (2003), 117.17 (2002), 123.23 (2001), 115.88 (2000), 102.7 (1999)