Cape Verde 

Cape Verde country policy

Policy established 26 May 2009

• The country ceiling is 30 mln euro
• Early warning signal 10 mln euro
• - of which was used as at 2011-12-31 8 mln euro
• Public buyers: ORIO facility
• Private buyers: SIF facility

Country class: 5

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Cape Verde country facts

Atradius DSB Economic Research

Country Report last updated :  3 April 2009
Country :  CAPE VERDE 

Political Situation
Stable

Head of state :  President Pedro de Verona Rodrigues Pires.   

Form of government
Government of the Partido Africano da Independencia de Cabo Verde (PAICV), headed by prime minister Jose Mario Neves. 
 
Internal Economic Situation
Lower Gdp-Growth

General situation
Lower tourist revenues and private transfers and less high FDI are the the main reasons for a GDP-growth falling to appr. 4% in 2009. Private consumption and (tourism-related) construction activities are especially hit. 
 
External Economic Situation
Very Weak

Main sources of foreign exchange
Private transfers, tourism; fuel re-exports. 

Main foreign markets
Spain (36%), Portugal (29%).

Main expenses of foreign exchange
Consumer and intermediary goods.

Balance of payments 
The very large trade deficits are structurally financed by earnings from tourism, workers’ transfers and FDI. Since 2008H2 this favourable development came to a halt, causing a balance of payments deficit and an erosion of reserves. The Cape Verde escudo is pegged to the euro since 2001.