Cape Verde Economic Growth Remains Robust

The economy of Cape Verde grew by 8.9% year-on-year in Q2 2026, the fastest pace since Q1 2024, accelerating from 6.4% in the previous period. The data underscored the resilience of the economy despite a challenging global environment. Growth was mainly boosted by stronger activity in trade and repair (+25.9%), construction (+35.3%), financial and insurance activities (+18%), and agriculture (+32.6%). Taxes less subsidies also rose by 4.7%, contributing positively. On the expenditure side, growth reflected higher household consumption (+6.2%) and government spending (+8.7%), with investment (+56.9%) providing the main boost. Meanwhile, net trade contributed negatively to GDP, as imports (+21.3%) rose much faster than exports (+8.8%).

The economy of Cape Verde advanced by 6.5% year-on-year in Q1 2026, sustaining robust growth after an upwardly revised 7.3% expansion in the previous period. Key contributors included fishing and aquaculture (48.2% vs -6.9% in Q4 2025), trade and repair services (7.3% vs 3.3%), financial and insurance activities (17.2% vs 15.6%), real estate (6.4% vs 6.3%), public administration (10.4% vs 9.9%), and education (17.9% vs 78.5%). Moreover, net taxes on products increased by a solid 6.6%. On the demand side, the expansion was mainly driven by private consumption (4.5% vs 1.8%) and increased investment (15.9% vs 5.9%). Government spending also remained supportive, rising 10%, although at a slower pace than the previous quarter's 18.7%. Net trade contributed negatively to the GDP, as exports rose 5.5% whereas imports advanced at a faster 6.9%.

Cape Verde’s economy advanced by 7.1% year-on-year in the last quarter of 2025, following an upwardly revised 8.3% growth in the previous period. Key positive contributions came from manufacturing (13.1% vs 15.1% in Q3), transport and storage (10% vs 12.5%), financial and insurance services (15.6% vs 4.3%), public administration (9.9% vs 8.6%), and education (78.5% vs 9.1%). Net taxes on production and imports also increased by 7.4%. Conversely, notable declines were seen in agriculture, livestock and forestry (-24% vs -7.2%); fishing and aquiculture (-6.9% vs 1.5%); mining (-7.4% vs 17.6%); information & communication (-10.4% vs 13.9%) and construction (-7.2% vs 17.1%). On the expenditure side, growth was mainly supported by higher public consumption (18.8% vs 10.1%) and net external demand, as stronger exports of goods and services (5.7% vs 3.9%) offset imports (3.8% vs 11.9%). In 2025, GDP expanded by 6.3%, following a 7% increase in 2024.