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Cape Verde Cape Verde

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Cape Verde

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EconomicPoliticalStructural

Cape Verde – Quick View
ECR score15.76 (Mar 2011)
ECR rank167 (Mar 2011)
Economic
GDP (2009)USD 1.44 billion
GNI per capita PPP (2009)USD 3,530
FDI inflow (2009)USD 119.78 million (- 43.31%)
Inflation (2010)2.1%
Central bank assets (Q3 2010)USD 1,785.94 million
Unemployment rate (2010)17%
Government deficit (Q3 2010)USD 104.26 million
Tax revenue (Q3 2010)USD 2.57 million
Political
Government typeDemocratic Republic
Recent political crisisNA
Economic freedom score (2011)65th
Freedom of information score (2010)128th
Corruption perception index (2010)45th (+1 places)
Structural
Birth rate25.90 per ‘000
Population balanceUnder 14 - 34.21%
Population balanceOver 60 – 5.03%
Life expectancy yearsMale 68.9 years
Life expectancy yearsFemale 76.6 years
Mortality rate5.60 per ‘000
Literacy rate85.9%
Internet access29.67%

[Top] Economic Overview

Gross Domestic Product (GDP)

Cape Verde’s GDP at market prices for the year 2009 amounted to CVE 118.12 billion as compared to CVE 130.35 billion in 2008. The IMF estimates the GDP in 2010 to be CVE 134.3 billion.

Cape Verde GDP and GDP Growth

(Source: Central Bank, Central Bank)

The GDP growth rate in the year 2009 was -9.37% as compared to 13.1% in 2008.

GDP per Capita

GDP per capita at current prices for the year 2010 is estimated at CVE 256,698.18 as compared to CVE 243,082.73 in 2009.

Cape Verde GDP per Capita

(Source: IMF)

Gross National Income (GNI)

The country’s GNI was USD 1,519.78 million in the year 2009 as compared to USD 1,411.22 million in 2008.

(Source: World Bank)

GNI per Capita at PPP

GNI per capita at PPP was USD 3,530 in the year 2009, as compared to USD 3,450 in 2008.

Cape Verde GNI per Capita, PPP

(Source: World Bank)

Income Tax Rates

The highest income tax rate for individuals in the country is 35%.

(Source: heritage.org)

Corporate tax

The highest corporate tax rate in Cape Verde is 25%.

Tax contribution

Total tax rate (% profit)

Social Security contributions

16.9

Property tax

0.7

Tax on interest

0.5

Municipal tax on profits

0.3

Vehicle tax

0.1

(Source: doingbusiness.org)

Inflation Rate

Inflation rate in Cape Verde was recorded at 2.1% in the year 2010, as compared to 0.99% in 2009.

Cape Verde Inflation Rate

(Source: IMF, Statistics of Cape Verde )

FDI Inflow

In 2009, Foreign Direct Investment (FDI) inflow amounted to USD 119.78 million as compared to USD 211.39 million in 2008.

Cape Verde Net FDI inflow

(Source: World Bank)

Banking sector assets

Total Assets of Central Bank of Cape Verde (CVE million)

End of Period

September 2010

December 2009

Total Assets

52,353.4

49,023.0

External Assets

29,972.2

29,014.5

International Reserves

31,164.4

30,242.2

Other Foreign Assets

-1,192.3

-1,227.7

Credit SPA

20,044.5

19,288.4

Central Government Credit

14,757.2

14,382.4

Credit TCMF

5,287.3

4,906

Credit to OIM

98.5

0

Creditto Economy

1,063.4

998.5

Other Assets

1,174.8

-278.

(Source: Central Bank)

[Top] Financial Indicators & Government Financial

Consumer Price Index

 The average consumer price index in the year 2010 was 110.08 as compared to 107.84 in the year 2009. The consumer price index for January 2011 was recorded at 111.7, indicating the rise in prices of consumer goods.

Cape Verde Consumer Price Index

Base 2007 = 100

(Source: Central Bank)

 Interest rates on saving deposits

 The interest rate on saving deposits In June 2010 was 0.75% and has remained unchanged for the last two years. (Source: Central Bank)

 Interest Rate on Time Deposits

 

Interest Rates on Time Deposits (%)

End of Period

2010

2009

2008

2007

31 to 90 days

3.39%

3.40%

2.83%

3.05%

91 to 180 days

4.10%

4.26%

3.85%

3.69%

181 days to 1 year

4.53%

4.14%

4.15%

4.16%

1 to 2 years

4.14%

4.47%

4.19%

4.17%

(Source: Central Bank)

 Money supply (Currency in Circulation)

 Total money in circulation in Cape Verde was CVE 120,825.8 million till third quarter of 2010.

 

(Source: Central Bank)

Government Expenditure

Total expenditure of Government of Cape Verde (CVE million)

 

2010 (till Q3)

2009

Total Expenditure

35,544

44,616

Total current spending

19,644

26,793

Personnel Expenses

9,825

12,172

Purchase of goods & services

1,642

2,341

Current interest

1,528

1,897

Current Transfers

5,354

6,700

Grants

257

845

Other current expenditure

477

2,446

Value to regularise

561

392

Expenditure oninvestments

15,900

17,823

(Source: Central Bank)

Official exchange rate

Cape Verde Exchange Rates
(Source: Central Bank)

Government finances

 Fiscal balance

The country registered a fiscal deficit of CVE 9,077 million till third quarter of 2010 as compared to deficit of CVE 8,058 million in the year 2009.

Cape Verde Fiscal Balance

(Source: Central Bank)

Total Revenue

Total revenue for the first three quarters of 2010 amounted to CVE 26,467 million as compared to CVE 36,558 million in 2009.

Total Revenue of Government of Cape Verde (CVE million)

 

2010 till Q3

2009

Total revenue

26,467

36,558

Budgetary revenues

22,058

29,708

Current revenue

22,051

29,533

Tax Revenues

19,457

25,676

Non-tax revenue

2,594

3,857

Repayments of capital by public companies

7

175

Donations

4,409

6,850

(Source: Central Bank)

Tax revenue

Total tax revenue of the country was CVE 19,457 million till third quarter of 2010 as compared to CVE 25,676 in the year 2009.

Cape Verde Tax Revenue

(Source: Central Bank)

Current Account Balance - Surplus/Deficit

The current account deficit for the first three quarters of 2010 was CVE 9,332.45 million as compared to deficit of CVE 12,922 million in 2009.

Cape Verde Current Account Balance

(Source: Central Bank)

 Balance of Payments

Balance of Payments (CVE million)

 

2010 till Q3

2009

Current Account

-9,332.45

-12,922.30

Capital Account&Financial Operations

16,032.32

19,793.10

Reserve Assets

-922.27

444.11

ErrorsandOmissions

-6,699.87

-6,870.80

(Source: Central Bank)

[Top] Labour Force and Employment Overview

Total labour force in the country was 206,900.2 in the year 2008, as compared to 200,258.9 in 2007. Female population accounted for 42.9% of the total labour force.

(Source: World Bank, ruralpovertyportal.org)

According to IMF, the projected unemployment rate in the country is 17% in the year 2010.

Cape Verde Unemployment rate

(Source: IMF)

Labour force participation rate

Total labour force participation rate was 66% of the total population. Labour force participation rate of female was 53%.

(Source: World Bank, World Bank)

Minimum wage

Cape Verde has no minimum wage for employees. In 2009, new entrants in the public sector earned about USD 163 per month.

Level of Unionisation

Workers in Cape Verde have right to form and join trade unions. The workers also have the right to strike and of collective bargaining. In the country, 22% of the work force is unionised.

Trade unions in Cape Verde:

  • Confederaçao Caboverdiana dos Sindicatos Livres (CCSL)
  • União Nacional dos Trabalhadores de Cabo Verde - Central Sindical (UNTC-CS)

(Source: ICFTU)

[Top] Political Stability

The government type in Cape Verde is Democratic Republic. The political system of the country is comprised of executive body, legislative body and judicial body.

The Executive Body consists of the President, the Prime Minister and the Council of Ministers. The President is the head of the state and the National Assembly and elected directly through a secret ballot. The Prime Minister is the head of the government. The Prime Minister is nominated by the National Assembly and elected by The President.

The parliament, known as the Assembleia Nacional or the National Assembly, is unicameral. It is comprised of 72 members, directly elected for a term of five years.

Major Political parties in Cape Verde include:

  • African Party for Independence of Cape Verde
  • Democratic and Independent Cape Verdean Union
  • Movement for Democracy

 (Source: governo.cv, parlamento.cv, presidenciarepublica.cv, state.gov, IPU)

Regulatory Environment in Cape Verde

The executive powers are exercised by the President, the Prime Minister and the Council Ministers. The Legislative Powers are exercised by the National Assembly.

The President is the Supreme Commander of Armed Forces, and has powers to dissolve the national assembly in the situation of institutional crisis, to appoint the Prime Minister and the Judge President of the Supreme Court.

The Prime minister has the right to direct and coordinate government policies and operations.

The legislative powers include approving the constitutional laws, to make laws on all matters, to approve the state budget and the proposal of government, to approve international treaties and agreements.

The National Assembly has the rights to approve and prepare the rules of procedure of the National Assembly, to establish the special committee and ad hoc commission.

(Source: presidenciarepublica.cv, presidenciarepublica.cv)

Cape Verde Economic Freedom Indices

The country’s economic freedom score is 64.6 making its economy 65th freest in the 2011 Index of Economic Freedom. It ranks 3rd out of 46 countries in the Sub-Saharan Africa region.

(Source: heritage.org)

Corruption perception

Cape Verde is placed at 45th position in the Corruption Perceptions Index (CPI) 2010 with a score of 5.1. CPI measures the perceived level of public-sector corruption in 178 countries and territories around the world.

(Source: transparency.org)

Freedom of Information

The freedom of media and press in the country is guaranteed by law. Majority of the media is state owned but there are private press and private broadcasters.

(Source: BBC, freedomhouse.org)

Cape Verde was ranked at 26th position in the World Press Freedom Index 2010, with a score of 8, indicating low levels of media restriction. (Source: rsf.org)

Newspapers

Major newspapers in the country include:

  • Jornal Horizonte
  • Expresso das Ilhas
  • A Semana

(Source: BBC)

 

Judicial system

The Judicial System of Cape Verde is comprised of:

  • The Supreme Court and courts of first instance
  • The Court of Auditors
  • The Military Court of Instance
  • The Tax and Custom Court

The Supreme Court is the highest court of justice in the country.

(Source: presidenciarepublica.cv)

[Top] Demographic Overview

Total population in the country was 517,831 in 2010 as compared to 508,633 in the year 2009. Of the total population, males in the country accounted for 48.41%, whereas females accounted for 51.59% in 2010.

(Source: Statistics of Cape Verde)

Gender Ratio

The gender ratio in the country is imbalance as the country has 91.6 men per 100 women in the year 2009.

About 60.76% of the population is in the age group of 15 to 64 years, followed by 34.21% in the age group of 5 to 14 years and 5.03% of the population is above 65 years.

Population by Age

No of People

0-14

177,151

15-64

314,634

65+

26,046

(Source: Statistics of Cape Verde)

Mortality Rate

Total mortality rate in the country was 5.6 deaths per 1,000 population in 2010 as compared to 5.7 deaths per 1000 population in 2009. Infant mortality rate in the country was 23.9 deaths per 1000 live births in 2010 as compared to 24.3 deaths per 1000 live births in 2009.

(Source: Statistics of Cape Verde)

Birth Rate

The birth rate was 25.9 births per 1000 population in 2010 as compared to 25.7 births per 1000 population in 2009.

(Source: Statistics of Cape Verde)

Average Life Expectancy rate

Total average life expectancy was 72.9 years in the year 2010. The average life expectancy for males was 68.90 years and 76.60 years for females.

(Source: Statistics of Cape Verde)

Migration

In the year 2010, total migration of the country was -1,298 as compared to -1 327 in the year 2009.

(Source: Statistics of Cape Verde)

Human Development Index

The country was placed at 118th rank on the Human Development Index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income). 

(Source: UNDP)

[Top] Soft Infrastructure

Literacy Rate

Adult literacy rate in the country was 85.9% of the total population in 2010, as compared to 85.3 in the year 2009.

(Source: UNDP)

Educational resources

Primary education in Cape Verde is compulsory and free for children between the age of 6 and 12 years. Secondary education is free for children whose family income is less than CVE 160,000. The secondary education system is of three stages of two years each. The university education is of three or four year’s duration.

Total expenditure on education was 5.7% of the total expenditure of the government in 2008.

(Source: UNDP, estandardsforum.org)

Health care

The health care services in the country are provided through regional hospitals, health centres, sanitary stations and basic health units.

Health centres are primary health care institutions through which primary health care services are provided to individuals and families. Primary care includes preventive, curative, as well as rehabilitative care.  These health centres are comprised of a health team, which is headed by a doctor.

The country has 90 nurses and midwives per 100,000 populations, 50 physicians per 100,000 people. The country also has 11 dentists, 9 environment and public health workers and 43 pharmacists. The country has 210 hospital beds per 100,000 people.

Expenditure on health was 3.4% of the total expenditure of government in 2007.

(Source: UNDP, estandardsforum.org, minsaude.gov.cv)

[Top] Hard Infrastructure

The mass public transport in the country is roadways.

Roadways

 The total length of roads in the country was 1,350 km of which 69% are paved.

(Source:estandardsforum.org page no – 5)

Ports

 Major ports in the country include:

  • Porto da Praia
  • Port of Ingles
  • Port of Tarrafal
  • Port of Sal Rei
  • Porto da Palmeira
  • Porto Grande
  • Port of Porto Novo

 (Source: worldportsource.com)

 Airports

Town

Airport name

Runway length (ft)

Francisco Mendes

Francisco Mendes

4,200

Maio

Maio

3,900

Preguica

Preguica

4,500

Rabil

Rabil

4,000

S. Pedro

S. Pedro

3,900

Sal

Amilcar Cabral

10,700

Sao Filipe

Sao Filipe

3,900

(Source: Air charter world)

 Telecommunications networks

The country had 14.27 fixed telephone lines per 100 inhabitants in 2009 as compared to 14.41 fixed telephone lines per 100 inhabitants in 2008.

Cape Verde Fixed telephone lines per 100 inhabitants

(Source: UN)

The country had 77.53 mobile cellular subscriptions per 100 inhabitants in the year 2009 as compared to 55.68 mobile cellular subscriptions per 100 inhabitants in 2008.

Cape Verde Mobile cellular subscriptions

(Source: UN)

In 2009, 29.67% of the total population used internet services as compared to 20.61% users in the year 2008.

Cape Verde Internet Users

(Source: UN)

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