Cabo Verde, with a population of 593,149, is ranked 161st in the world, just behind Montenegro. Located off the coast of West Africa, it covers 4,030 square kilometers, ranking 158th globally, just below Trinidad and Tobago.
Cabo Verde, with a GDP of 2,226,862,134.08787 USD in 2022, holds the 169th rank globally. It is closely behind Lesotho, which has a GDP of 2,236,502,124.16956 USD. In terms of GDP per capita, Cabo Verde ranks 123rd with 3,754.30479 USD. It lags behind West Bank and Gaza, with a GDP per capita of 3,789.32797 USD.
Despite its moderate economic position, Cabo Verde has been making steady progress in recent years, focusing on sectors like tourism and renewable energy to drive growth and development.
What are the economic activities of Cabo Verde?
- Primary activities: 8.9% of GDP.
- Secondary activities: 17.5% of GDP.
- Tertiary activities: 73.7% of GDP.
Primary Sector of Cabo Verde
Cabo Verde’s primary sector, mainly focused on agriculture, thrives due to its tropical climate and diverse natural resources. With 19.60% of land dedicated to agriculture, the country produces a variety of crops and animal products. Sugarcane, tomatoes, coconuts, pulses, goat milk, vegetables, bananas, milk, cabbages, and potatoes are among the top agricultural products.
Despite contributing 8.9% to the GDP, agriculture plays a crucial role in providing food security and employment opportunities, showcasing the importance of its diverse range of products to the country’s agricultural sector.
The geological diversity of Cabo Verde contributes to the availability of various natural resources. The country’s primary sector relies on salt, basalt rock, limestone, kaolin, fish, clay, and gypsum. These resources play a crucial role in the economy, supporting industries such as mining, construction, and fishing, which are vital for the country’s economic growth and development.
Secondary Sector of Cabo Verde
What is the secondary sector or what are secondary activities?
The secondary sector involves industries that transform raw materials into finished products for consumption. In Cabo Verde, the main industrial products are food and beverages, fish processing, shoes and garments, salt, and ship repair. These products are manufactured for domestic sale and export, contributing to the country’s economy and development.
Manufactures in Cabo Verde only account for 20.56% of total exports in 2023, indicating their relatively minor role in the country’s export economy.
Tertiary sector of Cabo Verde
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Cabo Verde encompasses various services where individuals provide knowledge and time to enhance productivity and meet needs. Main activities include restaurants, healthcare, education, banking, communication, media production, tourism, and transportation. These services play a crucial role in the country’s economic development and well-being.
In particular, Cabo Verde’s economy heavily relies on tourism, contributing significantly to its GDP. With 758,000 annual arrivals, tourism plays a vital role, showcasing the country’s allure. The stunning Santa Maria beach and the vibrant capital, Praia, attract visitors worldwide, captivating them with their unique charm and natural beauty, solidifying Cabo Verde’s position as a premier tourist destination.
Another example of tertiary economic activity is the mobile cellular sector, which boasts around 589,000 subscriptions, facilitating communication and supporting technological growth across various industries. This connectivity enhances business operations, promotes digital services, and fosters innovation, ultimately driving economic development.
Military Activities and Economic Sectors of Cabo Verde
The military is a clear example of many economic activities in a country. The primary sector provides resources needed for military use, like food and materials. The secondary sector includes the manufacturing of military equipment, while the tertiary sector offers services like training and logistics. The quaternary sector focuses on military research and development, and the quinary sector involves high-level decision-making and strategy for defense.
In Cabo Verde, the military expenditure for 2023 is 13.2 million US dollars, which is 0.55% of the country’s GDP. The active military force consists of 1,200 personnel, resulting in 2.1 active military members per 1,000 capita.
International Trade of Cabo Verde
Import Activities of Cabo Verde
Cabo Verde’s high import activities, accounting for 56.71% of GDP, are crucial for meeting domestic demand and driving economic growth.
Cabo Verde’s main import partners are Portugal, Spain, China, Netherlands, and Togo. The country imports refined petroleum, fish, plastic products, milk, and cars to meet its domestic needs and support various industries.
Exports Activities of Cabo Verde
Cabo Verde’s total exports in 2023 were $912,026,271.36, accounting for 40.96% of its GDP. With export activities playing a high role, they are crucial for the country’s economic growth and stability.
Cabo Verde’s export activities are diverse, with fish, shellfish, garments, natural gas, and scrap iron being key commodities. The country’s major export partners are Spain, Portugal, Italy, the US, and India, with Spain accounting for the largest share at 56%.
Cabo Verde economy challenges in 2024
In 2024, Cabo Verde faces challenges in sustaining GDP growth due to global economic uncertainties. The country grapples with reducing poverty and managing external debt with reliance on foreign remittances and aid. The tourism sector recovery is crucial for economic stability.
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