Cabo Verde Economic Update Spring 2025

Economic growth is estimated to have accelerated to 7.3 percent in 2024, driven by the strong performance of the service sector-particularly tourism-and a recovery in agricultural activity after nearly seven years of drought. The service sector contributed 5.4 percentage points-or 70 percent-of overall growth. Tourist arrivals increased by about 16.5 percent year-on-year (y/y), reaching 1.18 million visitors (from 1 million in 2023). Notably, 2024 saw a pick-up in non-traditional tourism-with 13 percent of tourists opting for aparthotels (up from 1 percent in 2023)-boding well for the local economy. High rainfall supported a good agricultural season, with the sector contributing positively to growth for the first time in years. On the demand side, exports (dominated by tourism) and private consumption remained the primary drivers of growth