Economy of Cape Verde Economy of Cape Verde Cape Verde is a small archipelagic nation that lacks resources and has experienced severe droughts. Agriculture is made difficult by lack of rain and is restricted to only four islands for most of the year. Most of the nation's GDP comes from the service industry. Cape Verde's economy has been steadily growing since the late 1990s, and it is now officially considered a country of average development, being only the second African country to have achieved such transition, after Botswana in 1994. Cape Verde has significant cooperation with Portugal at every level of the economy, which
History of Cape Verde coup in Guinea-Bissau (Portuguese Guinea declared independence in 1973 and was granted de jure independence in 1974), relations between the two countries became strained. Cape Verde abandoned its hope for unity with Guinea-Bissau and formed the African Party for the Independence of Cape Verde (PAICV). Problems have since been resolved, and relations between the countries are good. The PAICV and its predecessor established a one-party state and ruled Cape Verde from independence until 1990. Responding to growing pressure for a political opening, the PAICV called an emergency congress in February 1990 to discuss proposed constitutional changes to end one-party rule.