Cape Verdean Economy Grows by 10.2% in the First Quarter

The Cape Verdean economy grew by 10.2% in the first quarter of this year compared to the same period in 2023.

According to today’s announcement by the National Institute of Statistics (INE), the tourism sector and related services primarily drove this growth.

This increase in Gross Domestic Product (GDP) exceeds the growth estimates for this year, which are around 5%.

Transportation, storage, and accommodation with food services were the primary contributors to the quarterly GDP growth among economic sectors.

This trend is consistent with the ongoing indications of tourism growth.

In terms of contributions, commerce and repair activities, along with agriculture, livestock, and forestry, also showed significant growth.

The INE also noted that “net taxes on products, in real terms, showed a positive year-on-year variation of 9.1% in the first quarter.”

On the expenditure side, this positive GDP variation resulted from an increase in private consumption and exports.

In 2023, the Cape Verdean economy grew by 5.1%, largely driven by the performance of the tourism sector.

This growth concentrated on two of the nine islands in the archipelago (Sal and Boa Vista).

In June, the Budget Support Group (GAO) recommended diversifying the economy to make it more resilient to external shocks. This objective is among the goals listed by the government.

The GAO consists of Spain, Luxembourg, Portugal, the European Union, the African Development Bank, and the World Bank.