Cape Verde economy grows by 6.7% in first quarter, tourism remains key driver

According to the National Statistics Institute (INE), the Cape Verdean economy experienced a 6.7% growth in the first quarter of the year, following the remarkable 17% growth witnessed in 2022.

This data reflects the Gross Domestic Product (GDP) of Cape Verde and indicates a decrease compared to the 21.7% growth in the same period last year.

The INE’s Quarterly Accounts report reveals that private sector consumption increased by 12.9% during the first quarter, while public consumption declined by 1.0% and investment experienced a setback of 26.3%.

The report also highlights certain sectors that contributed to the decline in GDP during the first quarter.

Sectors such as agriculture, livestock, and forestry (-10.1%), extractive industries (-17.1%), construction (-17.1%), and health and social work (-14.4%) experienced negative growth.

On the other hand, fishing and aquaculture witnessed a growth of 23.5%, while accommodation and catering increased by 27.5%, and business services activities grew by an impressive 49.4%.

Additionally, the INE revised the annual indicators based on the final results for 2019.

It revealed a more significant decline in GDP for 2020, from -19.3% to -19.6%, and a downward revision of the growth rates for 2021 and 2022, from 6.8% to 6.4% and from 17.7% to 17%, respectively.

Despite the challenges posed by the COVID-19 pandemic in 2020, the Cape Verdean economy demonstrated a full recovery last year, driven by the strong performance of the tourism sector.

The growth of 17% in 2022, combined with the 6.4% growth in 2021, effectively reversed the 19.6% recession experienced in 2020.

The INE revised the previously announced figure of a 14.8% recession in 2020.

It is worth noting that tourism plays a significant role in Cape Verde, contributing approximately 25% to the country’s GDP and employment figures.

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