Cabo Verde's Economy Continues Strong Recovery with Inflation at 1% and Poverty Rates Down to 14.4%

Cabo Verde's economy has made notable strides in recent years, particularly in macroeconomic management, debt reduction, and poverty alleviation. According to the latest World Bank report, the country's economy continues on a strong recovery path, supported by robust tourism activity and a modest recovery in agriculture. However, key vulnerabilities remain, including reliance on tourism and exposure to external shocks.

Key Takeaways:

• 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).
• Real GDP in Cabo Verde grew by 7.3% in 2024, supported by robust tourism activity and a modest recovery in agriculture.
• Key vulnerabilities remain, including reliance on tourism, exposure to external shocks, and fiscal pressures from state-owned enterprises (SOEs).
• The report recommends accelerating efforts to improve SOE performance, exercising prudence in creating new ventures, and maintaining fiscal discipline while investing in high-impact projects.
• The report highlights the critical need for policies to ensure growth is inclusive, with a focus on breaking down barriers faced by women in the labor market.
• Closing gender gaps in employment and earnings could boost GDP by up to 12.2% in the long-term, according to the report.

Statistics:

• Inflation rate: 1% in 2024 (lowest level in recent years)
• Poverty rate: 14.4% ($3.65 a day 2017PPP line)
• Real GDP growth: 7.3% in 2024
• GDP growth projection: 5.9% in 2025
• Poverty expected to fall further in 2025

Sources:

• The World Bank, "Cabo Verde Economic Update 2025"
• Indira Campos, World Bank Resident Representative for Cabo Verde
• Anna Carlotta Massingue, Senior Country Economist
• M2 PressWIRE, "Cabo Verde: Unlocking Inclusive Growth Through Increased Resilience and Equal Opportunities" (June 24, 2025)