Cape Verde Economy Grows 6.4% in Q1 2026 | GDP Report
Cape Verde’s economy maintained its upward trajectory in the first three months of 2026, with Gross Domestic Product (GDP) expanding by 6.4% year-on-year. While the figure represents a slight cooling from the 7.3% growth recorded in the final quarter of 2025, the archipelago continues to show resilience driven by tourism, transport, and public investment.
Drivers of Economic Expansion
Growth was broad-based across the sectors that comprise more than half of the nation’s economic output. Public administration and social security led the major sectors with a 10.4% increase, followed by trade and repairs (+7.3%), real estate (+6.4%), and transport and storage (+4.1%). The vital accommodation and food services sector saw a modest gain of 0.3%.
The most dramatic surge occurred in the fishing and aquaculture industry, which skyrocketed by 48.2%. Conversely, the agriculture, livestock, and forestry sector faced a setback, contracting by 5.9%. Experts attribute the volatility in these sectors to seasonal shifts and irregular production cycles.
Spending and Trade Trends
Domestic demand remained robust during the first quarter. Investment saw a significant jump of 15.9%, while public consumption rose by 10% and private household spending grew by 4.5%.
On the international stage, Cape Verde’s trade activity remained active. Exports of goods and services increased by 5.5%, supported by the sustained recovery of foreign tourism and expanded flight connections between the islands and Europe. Meanwhile, imports grew by 6.9% to meet rising domestic demand.
Future Outlook: Growth vs. Headwinds
Cape Verde’s recent economic performance follows strong annual growth of 7% in 2024 and 6.3% in 2025. However, international financial institutions provide varying outlooks for the remainder of the year.
- The African Development Bank (AfDB): Predicts a slowdown to 4.7%.
- The International Monetary Fund (IMF): Forecasts a slightly more optimistic 5.1%.
- Fitch Ratings: Estimates the archipelago will maintain an average growth rate of 5.4% through 2026 and 2027.
Despite these varied forecasts, tourism remains the undisputed engine of the Cape Verdean economy, bolstered by the nation’s increasing accessibility as a premier destination for European travelers.
Image: Pexels – Ana Marta Jorge
