Cabo Verde: Unlocking Inclusive Growth Through Increased Resilience and Equal Opportunities – World Bank

Cabo Verde Economic Update 2025: Emphasizing Sustainable Development Goals

Overview of Economic Recovery and Growth

PRAIA, June 23, 2025 – According to the Cabo Verde Economic Update 2025 published by the World Bank, Cabo Verde’s economy demonstrated a strong recovery in 2024 with a real GDP growth of 7.3%. This growth was primarily driven by robust tourism activities and a modest recovery in agriculture, contributing to the achievement of several Sustainable Development Goals (SDGs), including:

• SDG 8: Decent Work and Economic Growth
• SDG 1: No Poverty
• SDG 2: Zero Hunger

Despite notable progress in macroeconomic management, debt reduction, and poverty alleviation, the country faces vulnerabilities such as dependence on tourism, exposure to external shocks, and fiscal pressures from state-owned enterprises (SOEs), which impact sustainable development.

Key Findings and Economic Indicators

1. Inflation and Poverty Reduction: Inflation decreased to 1% in 2024, the lowest in recent years, aiding in reducing poverty to 14.4% based on the $3.65/day (2017 PPP) poverty line (SDG 1).
2. Public Investment and Debt: Increased public investment execution and continued debt reduction support fiscal sustainability (SDG 17: Partnerships for the Goals).
3. Current Account Surplus: Achieved for the first time in four years, indicating improved economic stability.

Projections and Risks

GDP growth is projected at 5.9% for 2025, with further reductions in poverty expected. However, the report highlights risks including global uncertainties, commodity price shocks, and climate-related threats, which align with challenges under:

• SDG 13: Climate Action
• SDG 9: Industry, Innovation, and Infrastructure

Recommendations emphasize the need for:

• Improved governance and performance of SOEs.
• Prudent creation of new ventures.
• Maintaining fiscal discipline while investing in high-impact projects.

Unlocking Women’s Economic Potential: A Focus on Gender Equality

The report’s special focus on women’s economic participation addresses critical barriers faced by Cabo Verdean women in the labor market, directly supporting:

• SDG 5: Gender Equality
• SDG 4: Quality Education
• SDG 10: Reduced Inequalities

Key findings indicate that closing gender gaps in employment and earnings could increase GDP by up to 12.2% in the long term.

Policy Recommendations to Promote Inclusive Growth

To enhance women’s economic empowerment and inclusive growth, the report recommends:

• Expanding access to childcare and flexible work arrangements to support work-life balance.
• Promoting women’s skills development in STEM fields and technical and vocational education and training (TVET).
• Addressing employer discrimination and transforming social norms to foster equal opportunities.

Conclusion

According to Indira Campos, World Bank Resident Representative for Cabo Verde, “Cabo Verde’s recovery is a testament to the resilience of its people and institutions. To transform this rebound into lasting and inclusive prosperity, bold reforms are essential, especially in SOE governance, women’s economic participation, and economic diversification.”

Anna Carlotta Massingue, Senior Country Economist, emphasized, “By aligning reform efforts with inclusive policies, Cabo Verde has a unique opportunity to strengthen resilience, empower more citizens—especially women—and build a more sustainable and equitable future.”

Alignment with Sustainable Development Goals

• SDG 1 (No Poverty): Poverty reduction through economic growth and social inclusion.
• SDG 5 (Gender Equality): Empowering women to participate fully in the economy.
• SDG 8 (Decent Work and Economic Growth): Sustaining robust economic growth and employment.
• SDG 9 (Industry, Innovation, and Infrastructure): Encouraging diversification and innovation.
• SDG 13 (Climate Action): Addressing climate risks impacting economic stability.
• SDG 17 (Partnerships for the Goals): Strengthening governance and fiscal discipline.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 1: No Poverty – The article discusses poverty alleviation efforts and the reduction of poverty to 14.4%.
2. SDG 5: Gender Equality – Focus on unlocking women’s economic potential, closing gender gaps in employment and earnings, and promoting women’s participation in STEM and labor market.
3. SDG 8: Decent Work and Economic Growth – Economic recovery, GDP growth, improving SOE governance, and promoting inclusive economic participation.
4. SDG 9: Industry, Innovation and Infrastructure – Emphasis on technical and vocational education and training, and structural reforms.
5. SDG 10: Reduced Inequalities – Addressing labor market barriers for women and promoting inclusive growth.
6. SDG 13: Climate Action – Mention of climate risks affecting growth and reform.

2. Specific Targets Under Those SDGs Identified

1. SDG 1 – Target 1.2: Reduce at least by half the proportion of men, women and children living in poverty in all its dimensions.
2. SDG 5 – Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.
3. SDG 5 – Target 5.b: Enhance the use of enabling technology, in particular information and communications technology, to promote the empowerment of women.
4. SDG 8 – Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation.
5. SDG 8 – Target 8.5: Achieve full and productive employment and decent work for all women and men.
6. SDG 9 – Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and GDP.
7. SDG 10 – Target 10.2: Empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
8. SDG 13 – Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters.

3. Indicators Mentioned or Implied to Measure Progress

• Poverty rate: Poverty reduced to 14.4% measured at $3.65 a day (2017 PPP line).
• GDP growth rate: Real GDP growth of 7.3% in 2024 and projected 5.9% in 2025.
• Inflation rate: Inflation dropped to 1% in 2024.
• Women’s labor market participation and earnings gap: Closing gender gaps in employment and earnings to boost GDP by up to 12.2%.
• Public investment execution and debt levels: Increased public investment execution and declining debt levels.
• Current account balance: Surplus recorded for the first time in four years.
• Access to childcare and flexible work arrangements: Implied as indicators for women’s economic participation.
• Participation in STEM and vocational education: Implied indicators for women’s skills development.

4. Table of SDGs, Targets and Indicators

Source: worldbank.org