Country Information - Cape Verde

ECONOMIC BACKGROUND Cape Verde weathered a period of high macroeconomic uncertainty in the face of important fiscal deficits in the run-up to the 2000-2001 elections for Parliament and the Presidency. The ensuing austerity program was backed by a first PRGF program in April 2002. Nonetheless, the growth rate fell to 3.0 percent in 2001, from 8.0 percent in 2000. The fiscal turn-around limited the deficit at about 3.0 percent including grants in 2001 (down from 19 percent in 2000). Exports (including tourism receipts) remain limited at about 27 percent of GDP, while imports represent about 60 percent of GDP. The tourism sector contributed approximately 8 percent of GDP in gross receipts in 2001, about twice as much as in 1999. On the political front, Cape Verde is a well-established functioning democracy, which has made impressive political and legal reforms and entrenched the rule of law. Having emerged out of a one-party political system, the country held its first democratic general elections in 1991, its second in 1996, and its third in 2001. The PAICV (Partido Africano para a Independência de Cabo Verde) is currently in office since its victory in legislative and presidential elections in January and February 2001, respectively. (Source: World Bank Group) Click here for Country Map [23kB]

BI-LATERAL TRADE OVERVIEW Very little trade takes place between the Cape Verde Islands and the United States. Total trade has been decreasing slightly over the past few years, and the Cape Verdes currently incur a trade deficit in bi-lateral trade with the U.S. No exports under the provisions of AGOA occurred during 2001 or 2002. However, on August 28, 2002, the Republic of Cape Verde was recognised to have met the necessary requirements under the 'Wearing Apparel Provisions', in addition to being declared a "Lesser Developed Country" and thus qualifying for the rules of origin exemption until September 30, 2004. The possibility thus exists that the Cape Verdes will in due course start exporting garments under AGOA. Of the negligible exports to the U.S., textiles and clothing accounted for over 90% of the total, with year-on-year data revealing growth in this category. Detailed bilateral trade data for this country, disaggregated by industry sector, can be accessed by following the link below. Aggregate data featuring all AGOA-eligible countries is updated on this website as soon as new data is published, including ranked AGOA / non-AGOA trade, aggregate trade by industry sector as well as the latest apparel trade data. Click here for Detailed Trade Profile