THE AFRICA TIMES | CABO VERDE — Cabo Verde’s economy experienced a growth of 6.3% in 2025. This growth was buoyed by record tourism arrivals, increased household consumption, and improved public finances. However, the World Bank’s latest Economic Update for 2026 highlights that structural weaknesses still jeopardize long-term growth.
Economic Performance and Growth Dynamics
The report, Unpacking the Inter-Island Connectivity-Growth Nexus, indicates that the nation’s economic progress contributed to reduced poverty, lowered unemployment, and a strengthened fiscal and external balance. Nevertheless, the report cautions that an overreliance on tourism, fiscal risks associated with state-owned enterprises, and inadequate transport links between islands continue to hinder inclusive and diversified growth.
Indira Campos, the World Bank Group
