<hdr>The World Factbook 1994: Cape Verde<nl>Economy</hdr><body>
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<item><hi format=bold>Overview:</hi> Cape Verde's low per capita GDP reflects a poor natural resource base, a serious, long-term drought, and a high birthrate. The economy is service oriented, with commerce, transport, and public services accounting for 60% of GDP. Although nearly 70% of the population lives in rural areas, agriculture's share of GDP is only 20%; the fishing sector accounts for 4%. About 90% of food must be imported. The fishing potential, mostly lobster and tuna, is not fully exploited. In 1988 fishing represented only 3.5% of GDP. Cape Verde annually runs a high trade deficit, financed by remittances from emigrants and foreign aid. Economic reforms launched by the new democratic government in February 1991 are aimed at developing the private sector and attracting foreign investment to diversify the economy.
<item><hi format=bold>National product:</hi> GDP—exchange rate conversion—$415 million (1991 est.)
<item><hi format=bold>National product real growth rate:</hi> 3.3% (1991 est.)
<item><hi format=bold>National product per capita:</hi> $1,070 (1991)
<item><hi format=bold>Imports:</hi> $145 million (c.i.f., 1990)
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<item>• <hi format=ital>commodities:</hi> foodstuffs, consumer goods, industrial products, transport equipment
<item>• <hi format=ital>partners:</hi> Sweden 33%, Spain 11%, Germany 5%, Portugal 3%, France 3%, Netherlands, US (1990 est.)
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<item><hi format=bold>External debt:</hi> $156 million (1991)
<item><hi format=bold>Industrial production:</hi> growth rate 18% (1988 est.); accounts for 7% of GDP
<item><hi format=bold>Electricity:</hi>
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<item>• <hi format=ital>capacity:</hi> 15,000 kW
<item>• <hi format=ital>production:</hi> 15 million kWh
<item>• <hi format=ital>consumption per capita:</hi> 40 kWh (1991)
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<item><hi format=bold>Industries:</hi> fish processing, salt mining, clothing factories, ship repair, construction materials, food and beverage production
<item><hi format=bold>Agriculture:</hi> accounts for 20% of GDP (including fishing); largely subsistence farming; bananas are the only export crop; other crops—corn, beans, sweet potatoes, coffee; growth potential of agricultural sector limited by poor soils and scanty rainfall; annual food imports required; fish catch provides for both domestic consumption and small exports
<item><hi format=bold>Economic aid:</hi>
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<item>• <hi format=ital>recipient:</hi> US commitments, including Ex-Im (FY75-90), $93 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-90), $586 million; OPEC bilateral aid (1979-89), $12 million; Communist countries (1970-89), $36 million
