Cape Verde’s economy grew by 10.2% in the first quarter of this year compared to the same period in 2023, mainly due to the tourism sector and related services, the National Statistics Institute (INE) reported on Monday.
This gross domestic product (GDP) growth exceeds growth forecasts for this year, which are around 5%.
In terms of activity sectors, the transportation and warehousing and hospitality and restaurant sectors were the ones that grew the most and contributed the most to annual GDP growth in the quarter, in line with performance already seen. Considering the growth of tourism GDP.
In terms of contribution, it is followed by trade and repair activities, as well as agriculture, livestock and forestry, which also recorded strong growth.
INE also notes that “taxes less subsidies on products in real terms showed a positive year-on-year growth of 9.1% in the first quarter.”
On the expenditure side, this positive change in GDP was the result of increased private consumption and exports.
In 2023, Cape Verde’s economy grew by 5.1%, reflecting the performance of the tourism sector, concentrated in two (Sal and Boa Vista) of the archipelago’s nine islands.
The country’s General Accounting Office (GAO) recommended in June that the economy diversify, “making it more resilient to external shocks,” a goal the government has included among its objectives.
GAO members include Spain, Luxembourg, Portugal, the European Union, the African Development Bank and the World Bank.