Praia, June 24, 2025 (Lusa) - The World Bank has said that Cabo Verde remains "on a solid recovery path", but that "important vulnerabilities persist", in an economic update report on the country.

The document, published on Monday, refers to GDP growth of 7.3% in 2024, “driven by strong tourism activity and a moderate recovery in agriculture” and, as announced on June 10 (in the Global Economic Prospects report), forecasts growth of 5.9% for this year.

“However, despite notable progress – particularly in macroeconomic management, debt ratio reduction and poverty reduction – important vulnerabilities remain, such as dependence on tourism, exposure to external shocks and fiscal pressures from public enterprises,” the update adds.

The report, entitled Unlocking Women's Economic Potential, analyses growth projections, highlights progress in poverty reduction and suggests structural reforms.

“Bold reforms are needed – in particular to improve public enterprise governance, support women’s economic participation and diversify the economy,” said Indira Campos, World Bank Resident Representative in Cabo Verde, quoted in the document.

The World Bank suggests “prudence in creating new entities” and “fiscal discipline”.

It also recommends “policies that ensure inclusive growth”.

“Despite progress in education and health, Cabo Verdean women continue to face barriers in the labour market,” it stresses.

The report indicates that eliminating gender inequalities in employment and income could increase GDP by up to 12.2% in the long term.

The report states that inflation “fell to 1% in 2024 – the lowest figure in recent years – which contributed to reducing poverty to 14.4%”, considering the poverty line of US$3.65 (€3.15) per day, in 2017 purchasing power parity.

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