The republic of Cabo Verde is projected to grow by 5.3% in 2025, according to the new Country Focus Report 2025 by the African Development Bank (AfDB) Group.
The report, launched at a hybrid event in Praia the country’s capital city, provides an optimistic outlook for the island nation, highlighting its strong post-pandemic recovery and a positive trend in key macroeconomic indicators.
Following a robust 7.3% GDP growth in 2024, largely fueled by a resurgent tourism sector, the AfDB’s forecast suggests continued momentum for Cabo Verde’s economy. The report attributes this sustained growth to the ongoing strength in tourism and services; tourism contributes 25% of the west African country’s GDP.
The AfDB’s analysis shows a significant improvement in the country’s economic health. Inflation, which was at 3.7% in 2023, has dropped to a low of 1.0% in 2024.
Similarly, Public debt has also been on a downward trajectory, decreasing from 144% of GDP in 2021 to 107.7% in 2024. the current account deficit has narrowed to 0.9% of GDP.
The report also highlights Cabo Verde’s strong financial position, with foreign reserves reaching $815.9 million, equivalent to “7.1 months of import cover”.
Foreign direct investment and remittances also provide a stable source of foreign exchange, standing at $430.4 million and $305.4 million respectively in 2023.
The AfDB’s findings and recommendations are designed to inform evidence-based policymaking, providing a clear path for Cabo Verde to leverage its capital for sustainable and inclusive development.
