Cape Verde Consumer Confidence Rises as Savings Hit Record Low
Consumer confidence in Cape Verde showed signs of improvement during the second quarter of 2026, though families remain deeply concerned about their personal finances and the national economy, according to new data from the National Institute of Statistics (INE).
A Mixed Economic Outlook
The INE’s latest consumer sentiment survey revealed that while the confidence indicator evolved positively compared to the same period in 2025, it remained flat relative to the previous quarter. Despite staying above the long-term historical average, the numbers reflect a population feeling the weight of current economic pressures.
When looking back over the past 12 months, surveyed households reported a perceived decline in both their personal financial health and the country’s broader economic standing compared to the second quarter of 2025. While families did note a perceived decrease in price levels and unemployment rates, these improvements have not yet translated into a sense of financial security.
The Death of Savings
Perhaps the most alarming finding in the report is the near-total erosion of household savings capacity. An overwhelming 99.7% of respondents stated that the current economic climate makes it impossible to save money—a significant jump from the 93.3% recorded just one year ago.
Only 0.3% of those surveyed believe they have the means to set money aside, a sharp drop from 6.7% in the second quarter of 2025. This indicates that almost every household surveyed is living paycheck to paycheck, with virtually no financial cushion for emergencies or future investments.
Optimism for the Nation, Worry for the Home
Looking ahead to the next 12 months, Cape Verdeans hold a paradoxical view of the future. While families expect their own personal financial situations to continue to worsen, they expressed cautious optimism that the country’s overall economic situation will improve.
Expectations for the coming year include a further decrease in the cost of goods and services, as well as a continued decline in unemployment. However, for most, these macroeconomic improvements have yet to reach the kitchen table.
The INE survey collects quarterly data from households in the major municipalities of Praia, Santa Catarina, São Vicente, and Sal, focusing on financial health, savings intentions, and general economic sentiment.
Image: Pexels – Lukasz Radziejewski
