Cape Verde is expected to record economic growth of 5.9% in 2025, according to forecasts by the World Bank.
In a published report, the institution attributes this growth dynamic to the entry of low-cost airlines into the market. Indeed, the decline in fuel prices will help maintain low inflation levels, around 2% for the same year.
"Combined with strong performance in the services and industrial sectors, this dynamic should help reduce the poverty rate to 13.3% in 2025, and then to **11.2% by 2027,” the report adds. The report is titled "Cabo Verde | Economic Update – Spring 2025: Unlocking Women’s Economic Potential.”
In addition, gross international reserves are expected to stabilize at the equivalent of 5.5 months of imports, a sufficient level to support monetary stability and provide room to respond to external shocks.
This momentum reflects a post-COVID-19 recovery trajectory.
Cape Verde has implemented several measures to revive its economy and combat poverty. According to the World Bank, these measures helped reduce the unemployment rate to 10.3% and the poverty rate to 15% in 2023. In 2024, growth rose to 7.3%, supported by a strong performance in the tourism sector and a modest recovery in agriculture.
However, the country remains vulnerable due to its dependence on tourism, exposure to external shocks—particularly in the energy sector and food prices—as well as fiscal pressures from public enterprises, in a context of heightened uncertainty in global trade frameworks.
According to the International Monetary Fund (IMF), a slowdown in global growth and supply chain disruptions would negatively impact tourism, inflation, and economic growth. Moreover, climate-related risks, such as rising sea levels and extreme weather events, pose long-term threats to infrastructure and economic stability.
In the medium term, growth is expected to stabilize around 5%, according to the financial institution, supported by greater efficiency in the public sector and efforts to attract private investment.