Cabo Verde's economy is experiencing a robust recovery, as indicated by the Cabo Verde Economic Update 2025 from the World Bank. The report reveals a 7.3% growth in real GDP for 2024, driven primarily by strong tourism and a modest agricultural recovery. Despite progress in macroeconomic management, debt reduction, and poverty alleviation, vulnerabilities remain due to reliance on tourism and fiscal pressures from state-owned enterprises (SOEs).
The report, titled "Unlocking Women’s Economic Potential," examines economic growth projections and emphasizes structural reforms necessary for sustained inclusive growth. It also highlights the importance of 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,” stated Indira Campos, World Bank Resident Representative for Cabo Verde.
Inflation decreased to 1% in 2024, contributing to poverty reduction at 14.4% based on the $3.65 a day 2017 PPP line. Public investment execution increased alongside declining debt levels, with the current account achieving a surplus for the first time in four years.
Looking forward, GDP growth is projected at 5.9% for 2025 with further poverty reduction expected. However, global uncertainties pose risks to continued growth and reform efforts. Recommendations include improving SOE performance and maintaining fiscal discipline while investing in high-impact projects.
The report stresses policies ensuring inclusive growth are crucial as women face labor market barriers despite advances in education and health sectors. Closing gender gaps could potentially increase GDP by up to 12.2% long-term.
To achieve these goals, recommendations include expanding access to childcare and flexible work arrangements; promoting skills development in STEM fields; 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.