PRAIA, June 23, 2025 – Cabo Verde’s economy continues on a strong recovery path, according to the latest Cabo Verde Economic Update 2025, released today by the World Bank. Real GDP in Cabo Verde grew by 7.3% in 2024, supported by robust tourism activity and a modest recovery in agriculture. However, while the country has made notable strides – particularly in macroeconomic management, debt reduction, and poverty alleviation – key vulnerabilities remain. These include reliance on tourism, exposure to external shocks, and fiscal pressures from state-owned enterprises (SOEs).
The report, titled Unlocking Women’s Economic Potential, analyses the country’s economic growth projections, highlights progress on poverty alleviation, and outlines the structural reforms needed to ensure sustained and inclusive growth. The report also includes a special topic, focused on leveraging women’s economic potential.
“Cabo Verde’s recovery is a testament to the resilience of its people and institutions. But to transform this rebound into lasting and inclusive prosperity, bold reforms are needed - particularly to improve SOE governance, support women’s economic participation, and diversify the economy,” said Indira Campos, World Bank Resident Representative for Cabo Verde.
The report notes that inflation dropped to 1% in 2024 – its lowest level in recent years – helping to bring poverty down to 14.4% ($3.65 a day 2017PPP line). Public investment execution increased, debt levels continued to decline, and the current account posted a surplus for the first time in four years.
Looking ahead, GDP growth is projected at 5.9% in 2025, with poverty expected to fall further. However, the report warns that global uncertainties, commodity price shocks, and climate risks could affect the pace of growth and reform. Among the recommendations, the report calls for accelerated efforts to improve SOE performance, prudence in creating new ventures, and for maintaining fiscal discipline while investing in high-impact projects.
The report highlights the critical need for policies to ensure growth is inclusive. Despite progress in education and health, Cabo Verdean women continue to face labor market barriers. The report finds that closing gender gaps in employment and earnings could boost GDP by up to 12.2% in the long-term.
To achieve this, the report recommends:
- Expanding access to childcare and flexible work arrangements.
- Promoting women’s skills in science, technology, engineering, and mathematics (STEM), as well as in technical and vocational education and training.
- Tackling employer discrimination and transforming social norms.
“By aligning reform efforts with inclusive policies, Cabo Verde has a unique opportunity to strengthen resilience, empower more citizens – especially women – and build a more sustainable and equitable future,” said Anna Carlotta Massingue, Senior Country Economist.
