How did tourism contribute to Cabo Verde’s economic growth after 2016?

Following the 2016 elections, Cabo Verde experienced strong economic growth that was significantly buoyed by a thriving tourism sector and the implementation of successful structural reforms.1

Tourism serves as a vital component of the country’s service-oriented economy, which is also supported by commerce, trade, transport, and public services. Revenue generated from tourism, alongside income from international airports and emigrants’ remittances, has been essential in enabling the country’s balance of payments to remain generally positive, even when the value of imports exceeds that of exports.2

However, this growth faced a major disruption in 2020 due to the COVID-19 pandemic. The resulting decline in tourism, combined with reduced consumption and broader economic impacts, caused the economy to contract by an estimated 14.8 percent that year.1