Located 500 kilometers off the west coast of Africa, Cabo Verde is an archipelago of 10 islands of which nine are inhabited. The country has an estimated population of 520,500. Only 10% of its territory is classified as arable land, and the country possesses limited mineral resources.
Politics in Cabo Verde have been largely consensus-oriented, and since its independence from Portugal in 1975, Cabo Verde has not experienced a single coup d’état. Elections are considered free and fair, and parties in power alternate regularly. The current government has been in office since the presidential and parliamentary elections of 2016, which led to a change with the victory of the opposition Movimento para Democracia (
The country’s small population spread across a large water area constitutes a major constraint to growth and development. It limits economies of
Despite the challenges associated with being a small island economy, Cabo Verde witnessed spectacular social and economic progress between 1990 and 2008, driven mainly by the rapid development of inclusive tourist resorts. During this period, its gross national income (GNI) per capita grew six-fold to US$3200, and it was the only non-extractive economy in Sub-Saharan Africa to reach
Consolidating its achievements as a middle-income country and further strengthening the conditions for poverty reduction and boosting shared prosperity will be key challenges. With its small open economy, the country is vulnerable to the vagaries of global economic developments. Given the fixed exchange rate with the Euro, it will be vital for the country to rebuild fiscal buffers to absorb future shocks. Diversification within and beyond the tourism
Growth is projected to approximate 4% over the medium-term, as
Based on the national poverty line, poverty levels were reduced considerably from 58% in 2001 to 35% in 2015. Extreme poverty - defined as those below the national food poverty line (PPP US$2.9 per person in 2015), dropped from 30% to 10% during this period. The increase was largely driven by fast growth in
Last Updated: Apr 19, 2018