[238] 61 56 16
FAX: [238] 61 13 55

Flag description: three horizontal bands of light blue (top, double
width), white (with a horizontal red stripe in the middle third), and
light blue; a circle of 10 yellow five-pointed stars is centered on
the hoist end of the red stripe and extends into the upper and lower
blue bands

@Cape Verde:Economy

Economy-overview: Cape Verde's low per capita GDP reflects a poor
natural resource base, serious water shortages exacerbated by cycles
of long-term drought, and a high birth rate. The economy is
service-oriented, with commerce, transport, and public services
accounting for almost 70% of GDP. Although nearly 70% of the
population lives in rural areas, the share of agriculture in GDP in
1995 was only 8%, of which fishing accounts for 1.5%. About 90% of
food must be imported. The fishing potential, mostly lobster and tuna,
is not fully exploited. Cape Verde annually runs a high trade deficit,
financed by foreign aid and remittances from emigrants; remittances
constitute a supplement to GDP of more than 20%. Economic reforms,
launched by the new democratic government in 1991, are aimed at
developing the private sector and attracting foreign investment to
diversify the economy. Prospects for 1998 depend heavily on the
maintenance of aid flows, remittances, and the momentum of the
government's development program.

GDP: purchasing power parity-$538 million (1997 est.)

GDP-real growth rate: 4.5% (1997 est.)

GDP-per capita: purchasing power parity-$1,370 (1997 est.)

GDP-composition by sector:
agriculture: 8%
industry: 18%
services: 74% (1996 est.)

Inflation rate-consumer price index: 6.2% (1996)

Labor force: NA

Unemployment rate: NA %

Budget:
revenues: $188 million
expenditures: $228 million, including capital expenditures of $116
million (1996)

Industries: food and beverages, fish processing, shoes and garments,
salt mining, ship repair,

Industrial production growth rate: NA%

Electricity-capacity: 7,000 kW (1995)

Electricity-production: 40 million kWh (1995)

Electricity-consumption per capita: 92 kWh (1995)

Agriculture-products: bananas, corn, beans, sweet potatoes, sugarcane,
coffee, peanuts; fish

Exports:
total value: $12.8 million (f.o.b., 1996 est.)
commodities: shoes, garments, fish, bananas, hides,
partners: Portugal, Spain, France, UK

Imports:
total value: $237 million (f.o.b., 1996 est.)
commodities: foodstuffs, consumer goods, indus