FX.co ★ Cape Verde Economic Growth Remains Robust

The Cape Verdean economy grew 6.5% year-on-year in the first quarter of 2026, maintaining strong momentum after a revised 7.3% expansion in the previous quarter. On the production side, growth was underpinned by several key sectors: fishing and aquaculture rebounded sharply (48.2% vs. -6.9% in Q4 2025), trade and repair services accelerated (7.3% vs. 3.3%), and financial and insurance activities strengthened further (17.2% vs. 15.6%). Real estate activity remained solid (6.4% vs. 6.3%), while public administration (10.4% vs. 9.9%) and education (17.9% vs. 78.5%) also contributed positively, though education grew more slowly than in the previous period. In addition, net taxes on products increased by a robust 6.6%.

From the demand perspective, the expansion was driven primarily by stronger private consumption (4.5% vs. 1.8%) and a marked pickup in investment (15.9% vs. 5.9%). Government consumption continued to support activity, rising 10%, albeit decelerating from the 18.7% increase recorded in the prior quarter. Net exports, however, weighed on overall growth: while exports rose 5.5%, imports grew more briskly, at 6.9%.