Cape Verde Service Sector Surges 12.4% Amid Trade Boom
Cape Verde’s service sector experienced a significant boost in the second quarter of 2026, with turnover surging 12.4% compared to the same period last year, according to the latest data from the National Statistics Institute (INE).
Trade and Transport Lead Growth
The INE’s Service Sector Activity Indicators (IASS) bulletin highlights that the surge was primarily driven by two key industries: trade and logistics. The “wholesale and retail trade, and repair of motor vehicles and motorcycles” sector saw a remarkable year-on-year increase of 24.3%. Meanwhile, the “transport and storage” sector maintained steady growth, rising by 10.3%.
This double-digit annual growth marks an acceleration compared to the first quarter of 2026, when the sector recorded a more modest year-on-year increase of 6.7%.
Labor Market and Wages See Gains
The positive momentum also extended to the labor market. Total employment within the service sector edged up by 0.4% year-on-year, while full-time employment saw a 0.3% increase.
More significantly, the gross remuneration index spiked by 11.1% compared to the second quarter of 2025. This wage growth also showed short-term strength, rising 2.1% relative to the first quarter of this year.
A Slight Quarterly Cooling
Despite the strong annual performance, the data suggests a minor cooling in activity between the first and second quarters. The overall service turnover index recorded a marginal quarterly decrease of 0.7%, reflecting a slight stabilization following the rapid gains earlier in the year.
Image: Pexels – Carlo Jünemann
