In 2026, Cape Verde is projected to achieve real GDP growth in the range of 4.7% to 4.9%. The nation’s economy is primarily supported by the tourism sector, the blue economy—including fisheries and maritime resources—and remittances from its diaspora. The national budget for this year will see an increase of 18.4%. Since July 2025, Cape Verde has been officially recognised as an upper-middle-income country. Alongside tourism, this economic expansion is underpinned by stable political and institutional frameworks.

Economic Projections for 2026

The gross domestic product (GDP) of Cape Verde is anticipated to reach approximately USD 2.77 billion in 2026, a growth driven by the resurgence of tourism and the fisheries sector, which account for more than 80% of the country exports. The vibrant expansion of the services sector is also noteworthy.

The 2026 budget reflects a substantial increase, prioritising the modernisation of airports and maritime facilities.

Deputy Prime Minister and Minister of Finance, Olavo Correia, has presented the government’s fiscal revenue forecast for the year. The target is ambitious: the collection of approximately 66 billion Cape Verdean escudos, equivalent to USD 699 million. The administration has affirmed its commitment to achieving this objective without imposing additional tax burdens on citizens or businesses.

A central policy goal is to sustain the robust economic growth that resulted in a 16.8% rise in gross national income per capita between 2023 and 2024. Inflation remains steady at around 1.7%.

Minister Correia has also highlighted the need for structural reforms to support ongoing economic development. His vision is clear: “We must strive for the Cape Verdean economy to grow between 5% and 7% in the short term, and then accelerate reforms so that our potential doubles, enabling us to achieve higher rates of growth, between 10% and 12%.”

Cape Verde: Strategic Infrastructure Investments Drive Growth

An undeniable catalyst for growth, recent investments in Cape Verde’s airports and maritime infrastructures have delivered a significant boost to the national economy.

In early 2026, Cape Verde initiated the second phase of its airport facilities’ modernisation, expansion, and operational enhancement programme, in collaboration with its strategic partner, Vinci Airports. Over the next three years, a total of 142 million euros will be invested in modernising the archipelago’s airports.

The initial investment phase, amounting to 80 million euros, resulted in a record 66% increase in passenger traffic between 2022 and 2025. Furthermore, thirty-five new air routes were established, supplementing the existing network. The introduction of low-cost carriers has also driven exponential growth in tourism and facilitated greater mobility for the diaspora, whose financial contributions are substantial.

The status of upper middle-income country.

This ambitious investment programme is designed to support the sustained growth of air traffic and to further stimulate economic and tourism development across the archipelago. It is important to note that, in the absence of significant mineral resources, Cape Verde relies primarily on tourism, the blue economy, and remittances from its diaspora as the main pillars of its financial stability.

Furthermore, the implementation of the environmental strategy by VINCI Airports and Cabo Verde Airports has resulted in significant progress towards the decarbonisation of airport sites. Reflecting on this achievement, Nicolas Notebaert, President of VINCI Airports, stated: “We are proud to contribute to making these airport facilities a model for economic growth and sustainable development, in close partnership with the Cape Verdean authorities.”

Despite these economic advances, Cape Verde, president José Maria Neves, during his meeting with French President Emmanuel Macron at the Élysée Palace in late January 2026 emphasised the need to strengthen bilateral ties and increase foreign investment in order to support the diversification of the national economy. To promote this diversification, the European Union has committed to investing 33.3 million euros in Cape Verde’s maritime economy with the aim of fostering growth in 2026.

It should be noted that Cape Verde is the only West African country to have attained upper middle-income status.