r capita GDP reflects a poor
natural resource base, serious water shortages exacerbated by cycles
of long-term drought, and a high birthrate. The economy is service
oriented, with commerce, transport, and public services accounting
for 60% of GDP. Although nearly 70% of the population lives in rural
areas, the share of agriculture in GNP is only 13%, of which fishing
accounts for 4%. 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 remittances
from emigrants and foreign aid, which form important supplements to
GDP. 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 1996
depend heavily on the maintenance of aid flows, remittances, and the
momentum of the government's development program.

GDP: purchasing power parity - $440 million (1994 est.)

GDP real growth rate: 4.6% (1994 est.)

GDP per capita: $1,040 (1994 est.)

GDP composition by sector:
agriculture: 13%
industry: 17%
services: 70% (1992 est.)

Inflation rate (consumer prices): 5% (1994 est.)

Labor force: 102,000 (1985 est.)
by occupation: agriculture (mostly subsistence) 57%, services 29%,
industry 14% (1981)

Unemployment rate: 35% (1994 est.)

Budget:
revenues: $174 million
expenditures: $235 million, including capital expenditures of $165
million (1993 est.)

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

Industrial production growth rate: NA%

Electricity:
capacity: 15,000 kW
production: 40 million kWh
consumption per capita: 73 kWh (1993)

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

Illicit drugs: increasingly used as a transshipment point for
illicit drugs moving from Latin America and Africa destined for
Western Europe

Exports: $4.4 million (f.o.b., 1992 est.)
commodities: fish, bananas
partners: Netherlands, Portugal, Angola, Spain

Imports: $173 million (f.o.b., 1992 est.)
commodities: foodstuffs, consumer goods, industrial products,
transport equipment
partners: Portugal, Netherlands, Germany, Spain, Brazil, France,
Cote d'Ivoire

External debt: $156 million (1991)

Economic aid:
recipient: ODA, $NA

Currency: 1 Cape Ve