Cabo Verde’s Economy Grows 7.3% in 2024, Focus Turns to Women’s Empowerment

Cabo Verde is continuing its robust post-pandemic recovery, with real GDP expanding by 7.3% in 2024, according to the Cabo Verde Economic Update 2025 released by the World Bank. Driven primarily by a boom in tourism and a modest resurgence in agriculture, the island nation has made impressive strides in macroeconomic management, public debt reduction, and poverty alleviation. However, the report also underscores persistent vulnerabilities, particularly the country’s dependence on tourism, exposure to external shocks, and financial strain caused by inefficient state-owned enterprises (SOEs).

The report, titled “Unlocking Women’s Economic Potential,” not only reviews macroeconomic trends but also dedicates a comprehensive analysis to the structural challenges that inhibit inclusive and long-term development. A special focus is given to gender disparities in economic participation, with evidence-based recommendations to help bridge the gap and unlock greater national productivity.

Economic Growth Anchored in Resilience

According to the World Bank, Cabo Verde’s recovery reflects the resilience of its institutions and people. The 7.3% GDP growth in 2024 was underpinned by a rebound in international tourism—a sector that contributes nearly a quarter of the country’s GDP—along with renewed investments and stronger-than-expected domestic demand.

The report also highlights several positive macroeconomic indicators:

• Inflation declined to just 1%, easing cost-of-living pressures.

• Poverty fell to 14.4% (measured at the $3.65/day 2017 PPP line).

• Public investment execution improved, signaling stronger implementation of capital projects.

• Debt-to-GDP ratio continued to decline, reflecting prudent fiscal management.

• The current account balance posted a surplus—the first in four years.

These gains are particularly noteworthy given the lingering impact of COVID-19 and global market volatility. However, the World Bank cautions that sustaining this momentum will require proactive reforms to address structural weaknesses and bolster resilience against future shocks.

Outlook for 2025: Growth to Moderate, Reforms to Deepen

The economy is projected to grow at a slightly slower pace of 5.9% in 2025, reflecting a stabilization in tourism and trade, tempered by potential risks from global economic uncertainty, commodity price fluctuations, and climate-related events.

The report warns that fiscal pressures stemming from underperforming SOEs remain a significant drag on public finances. It urges the government to:

• Accelerate reforms in SOE governance and performance;

• Exercise caution in launching new state-owned ventures;

• Prioritize high-impact public investments that generate economic returns;

• Maintain fiscal discipline, especially in a tightening global credit environment.

Spotlight on Gender Equity: A Key to Inclusive Growth

The special topic of the 2025 Update zeroes in on gender disparities in economic participation. Despite Cabo Verde’s notable achievements in health and education, women remain significantly underrepresented in the formal labor market, especially in leadership roles and technical professions.

The report estimates that closing gender gaps in employment and earnings could boost Cabo Verde’s GDP by up to 12.2% in the long term, making it one of the highest potential returns on inclusive policy reforms.

To realize this potential, the report offers a three-pronged policy framework:

1. Enhance Access to Childcare and Flexible Work Arrangements Expanding affordable childcare and promoting flexible schedules would enable more women to balance work and family responsibilities.

2. Promote Women in STEM and Technical Fields Investments in science, technology, engineering, and mathematics (STEM), as well as vocational training for women, are critical for diversifying employment opportunities and boosting wages.

3. Combat Discrimination and Transform Social Norms Public awareness campaigns and regulatory enforcement are needed to tackle employer discrimination, encourage female entrepreneurship, and reshape outdated perceptions about gender roles in the workforce.

“Empowering women is not only a moral imperative—it’s an economic necessity,” said Anna Carlotta Massingue, the World Bank’s Senior Country Economist for Cabo Verde. “Aligning reform efforts with inclusive policies will allow Cabo Verde to build a more equitable, resilient, and sustainable future.”

Policy Recommendations: Toward Sustainable Development

The World Bank encourages Cabo Verde to adopt a holistic approach to development by integrating economic modernization with social inclusion and environmental sustainability. Key policy recommendations include:

• Diversifying the economy beyond tourism through green industries, technology, and agriculture.

• Strengthening social protection systems to buffer against shocks.

• Improving data collection on gender and labor participation to better inform policy design.

• Fostering private sector partnerships, especially in infrastructure and renewable energy.

A Roadmap for Resilience

The Cabo Verde Economic Update 2025 concludes that while recent progress is commendable, long-term prosperity hinges on structural transformation. The next phase of growth must be inclusive, gender-responsive, and resilient to both economic and environmental shocks.

“Cabo Verde has a unique opportunity to convert short-term recovery into lasting prosperity,” said Indira Campos, World Bank Resident Representative. “To get there, bold reforms—especially those that empower women and streamline public finance—are essential.”