Cape Verde’s Industrial Production Index rose 3.4% year-over-year in Q2 2023. This is a 1.7% increase from the previous quarter.
Cape Verde is the second freest economy in Africa, behind Mauritius, scoring higher than some European countries.
The National Institute of Statistics (INE) also reported a 2.6% hike in the Industrial Production Price Index.
Moreover, the Business Volume Index showed a robust growth of 14.3%.
Employment, wages, and work hours also changed. These sectors recorded yearly changes of 1.4%, 5.3%, and 3.2%, respectively.
On the other hand, extractive industries plunged by 68.2%. Manufacturing industries saw a similar 3.4% growth as the main index.
The electricity and water sectors noted increases of 2.9% and 13.4%.
Additionally, the INE highlighted a 2.6% rise in the Production Price Index compared to last year’s Q2.
Manufacturing and water treatment mainly drove this growth, with increases of 6.1% and 1.0%.
Also, the Business Volume Index reported a 14.3% year-over-year surge. Yet, extractive sectors declined severely, showing a 79.1% drop in business volume.
Manufacturing and utility sectors, however, grew by 12.4% and 18.9% in business volume.
The INE also stated that employment and work hours have increased by 1.4% and 3.2%. Extractive industries reported a 5.6% fall in employment and a 12.1% decline in work hours.
Conversely, manufacturing noted rises of 3.8% and 6.7% in employment and work hours.
Electricity, gas, and water sectors showed minor declines in employment. These drops were -1.0% and -0.9% respectively.
Work hours in these sectors also decreased slightly, by -0.5% and -1.7%. Lastly, wages in the industry increased by 5.3%.
Extractive and manufacturing sectors reported changes of -17.0% and 5.6% in wages, while utility sectors showed 7.7% and -5.9% changes.
Background
In recent years, Cape Verde has been focusing on diversifying its economy. Once reliant on tourism, the nation now sees promise in its industrial sectors.
This recent uptick in the industrial index is a positive sign, reinforcing this strategic shift. However, the sharp decline in the extractive industries raises concerns.
It may signify a need for Cape Verde to reassess these sectors. Overall, the rise in wages and employment is good news for the labor market.