Cape Verde GDP Hits Two-Year High With 8.9% Growth in Q2
Cape Verde’s economy accelerated significantly in the second quarter of 2026, with Gross Domestic Product (GDP) growing 8.9% year-on-year, according to data released Monday by the National Statistics Institute (INE).
The growth marks a sharp rise from the 6.4% recorded in the first quarter and represents the archipelago’s strongest economic performance since early 2024.
Industry and Construction Lead the Charge
The surge was driven primarily by a massive boom in heavy industry. On the production side, extractive industries skyrocketed by 35.4%, while the construction sector followed closely with 35.3% growth. Other key contributors to the first-half performance included trade, financial services, education, and fishing.
However, the recovery remains uneven. The accommodation and food services sector—a critical pillar for the tourism-dependent nation—contracted by 8.8%, while business services saw a 3% decline.
Investment and Trade Dynamics
From an expenditure perspective, the economy displayed intense activity. Domestic investment surged by 56.9% compared to the same period last year, signaling strong confidence in the nation’s infrastructure and industrial development.
Foreign trade figures presented a mixed bag. The export of goods leaped by 42.8%, providing a significant boost to the balance of payments. In contrast, the export of services dipped by 4%. On the flip side, imports rose across the board, with goods increasing by 24.9% and services growing by 7.9%.
A Strong Half-Year Performance
For the first six months of 2026, Cape Verde’s total GDP grew by 7.6% in volume. The INE attributed this sustained momentum to a broad base of activities ranging from repair services to insurance, suggesting a resilient recovery despite volatility in the tourism sector.
Image: Pexels – Tim Diercks
