Praia, July 2, 2025 (Lusa) - The World Bank has raised Cabo Verde’s classification from lower-middle income to upper-middle income, reflecting an increase in per capita income, it announced in a statement.

“As of 1 July 2025, Cabo Verde is classified as an upper middle income country, according to the criteria established by the World Bank Group (WBG),” the institution said.

The reclassification “reflects a 16.8% increase in gross national income (GNI) per capita between 2023 and 2024, reflecting the country’s economic development,” namely “real growth of 7.3% recorded in 2024,” driven mainly by tourism.

Lower domestic inflation and a downward revision of the national population, “with an decrease of 12.8%, according to United Nations data”, which had a “direct impact on the calculation of GNI per capita”, also contributed to the calculations.

The World Bank classifies world economies into four income groups, low, lower middle, upper middle and high income, and the World Bank updates the classifications annually on 1 July, based on the previous year’s GNI per capita.

This classification independently maintains stable eligibility for access to the group’s resources, it added.

"Cabo Verde will continue to have access to concessional financing, namely through the International Development Association (IDA)," said Prime Minister Ulisses Correia e Silva in an Internet publication, considering the classification an achievement that's the result of the hard work of the people.

“Recognising the challenges that remain, Cabo Verde will work with the World Bank Group to define a transition plan under the new Country Partnership Strategy,” he concluded.

LFO/ADB // ADB.

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