Economy
GDP (2004): $983 million.
GDP per capita (2004): $2,091.
Annual real GDP growth rate (2005): 6.6%.
Inflation (2005): 0.4%.
Natural resources: Salt, pozzolana, limestone.
Agriculture: Products--bananas, corn, beans, sugarcane, coffee, fruits, vegetables, livestock products.
Industry: Types--fish and fish products, clothing, shoes, beverages, salt, construction, building materials, ship repair, furniture, metal products, tourism.
Trade (2004): Exports--$55 million: fuel, clothing, shoes and shoe parts, fish and crustaceans. Imports--$350.7 million: consumer goods, intermediary goods, capital goods, petroleum. Major trading partners, exports--Portugal 60.2%, U.S. 17.5%, U.K. 11.5%, Denmark 2.1%, Germany 1.7%. Major trading partners, imports--Portugal 40.7%, U.S. 12%, Netherlands 8.1%, Spain 5.1%, Italy 4.1%.
Fiscal year: Calendar year.
Currency: Escudo (CVEsc 91.03 = $1), which is pegged to the Euro.
Economic aid received: $92 million (2002). Largest donors: Portugal ($11 million); Luxembourg; Japan; and the United States ($5.9 million).

GEOGRAPHY
The Cape Verde Islands are located in the mid-Atlantic Ocean some 450 kilometers (about 300 mi.) off the west coast of Africa. The archipelago includes 10 islands and 5 islets, divided into the windward (Barlavento) and leeward (Sotavento) groups. The main islands in the Barlavento group are Santo Antão, São Vicente, Santa Luzia, São Nicolau, Sal, and Boa Vista; those of the Sotavento group include Maio, Santiago, Fogo, and Brava. All larger islands but Santa Luzia are inhabited.

Three islands--Sal, Boa Vista, and Maio--generally are level and very dry. Mountains higher than 1,280 meters (4,200 ft.) are found on Santiago, Fogo, Santo Antão, and São Nicolau.

Sand carried by high winds has created spectacular rock formations on all islands, especially the windward ones. Sheer, jagged cliffs rise from the sea on several of the mountainous islands. Natural vegetation is sparse in the uplands and coast, but interior valleys support denser growth.

Rainfall is irregular, and the archipelago suffers periodic droughts and consequent food shortages. The average precipitation per year in Praia is 24 centimeters (9.5 in.). During the winter, storms blowing from the Sahara sometimes cloud the sky, but sunny days are the norm year round.

CAPE VERDE ECONOMY
Cape Verde has few natural resources and suffers from poor rainfall and limited fresh water. Only 4 of the 10 main islands (Santiago, Santo Antão, Fogo, and Brava) normally support significant agricultural production. Mineral resources include salt, pozzolana (a volcanic rock used in cement production), and limestone.

The economy of Cape Verde is service-oriented, with commerce, transport, and public services accounting for more than 70% of GDP. Although nearly 70% of the population lives in rural areas, agriculture and fishing contribute only about 10% of GDP. Light manufacturing accounts for most of the remainder. An amount estimated at about 20% of GDP is contributed to the domestic economy through remittances from expatriate Cape Verdeans.

Since 1991, the government has pursued market-oriented economic policies, including an open welcome to foreign investors and a far-reaching privatization program. It established as top development priorities the promotion of market economy and of the private sector; the development of tourism, light manufacturing industries, and fisheries; and the development of transport, communications, and energy facilities. From 1994 to 2000 there was a total of about $407 million in foreign investments made or planned, of which 58% were in tourism, 17% in industry, 4% in infrastructure, and 21% in fisheries and services.

Fish and shellfish are plentiful, and small quantities are exported. Cape Verde has cold storage and freezing facilities and fish processing plants in Mindelo, Praia, and on Sal.

Cape Verde's strategic location at the crossroads of mid-Atlantic air and sea lanes has been enhanced by significant improvements at Mindelo's harbor (Porto Grande) and at Sal's international airport. Ship repair facilities at Mindelo were opened in 1983, and the harbors at Mindelo and Praia were recently renovated. The major ports are Mindelo and Praia, but all other islands have smaller port facilities. In addition to the international airport on Sal, airports have been built on all of the inhabited islands. All but the airport on Brava enjoy scheduled air service. The archipelago has 3,050 kilometers (1,830 mi.) of roads, of which 1,010 kilometers (606 mi.) are paved.