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© 2025 International Bank for Reconstruction and Development/The World Bank1818 H Street NW, Washington, DC 20433Telephone: 202-473-1000Internet:www.worldbankgroup.org Some rights reserved. This work is a product of the staff of The World Bank Group with external contributions.The findings, interpretations, and conclusions expressed in this work do not necessarilyreflect the views of the World Bank Group, its Board of Executive Directors, or thegovernments they represent. The World Bank Group does not guarantee the accuracyof the data included in this work. The boundaries, colors, denominations, and otherinformation shown on any map in this work do not imply any judgment on the partof The World Bank concerning the legal status of any territory or the endorsement oracceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver ofthe privileges and immunities of the World Bank Group, all of which are specificallyreserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encouragesdissemination of its knowledge, this work may be reproduced, in whole or in part, fornon-commercial purposes as long as full attribution to this work is given. Any querieson rights and licenses, including subsidiary rights, should be addressed to World BankPublications, The World Bank Group, 1818 H Street NW, Washington, DC 20433,USA; fax: 202-522-2625; e-mail:pubrights@worldbank.org Translations—If you create a translation of this work, please add the followingdisclaimer along with the attribution: This translation was not created by the WorldBank Group and should not be considered an official World Bank Group translation.The World Bank Group shall not be liable for any content or error in this translation. Adaptations—If you create an adaptation of this work, please add the followingdisclaimer along with the attribution: This is an adaptation of an original work bythe World Bank Group. Views and opinions expressed in the adaptation are the soleresponsibility of the author or authors of the adaptation and are not endorsed by theWorld Bank Group. Third-party content—The World Bank Group does not necessarily own each componentof the content contained within the work. The World Bank Group therefore does notwarrant that the use of any third-party owned individual component or part containedin the work will not infringe on the rights of those third parties. The risk of claimsresulting from such infringement rests solely with you. If you wish to reuse a componentof the work, it is your responsibility to determine whether permission is needed for thatreuse and to obtain permission from the copyright owner. Examples of components caninclude, but are not limited to, tables, figures, or images. Attributions—Please cite the work as follows: “World Bank. 2025. Cabo VerdeEconomic Update: Unlocking women’s economic potential. © World Bank.” Allrights and licenses, including subsidiary rights, should be addressed to Office of thePublisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax202-522-2422; tel: 202-522-2625; e-mail:pubrights@worldbank.org. Table of Contents Acronyms and AbbreviationsivAcknowledgementsviExecutiveSummaryvii A. Recent developments2Real sector2Fiscal and debt dynamics4External sector10Monetary policy and financial sector12Poverty14B. Outlook and risks15 Trends in gender equality20Good progress has been made on human capital endowments and agency20Gender disparities in labor market outcomes persist21The gender wage gap in Cabo Verde26Evidence points to a considerable gender wage gap26The wage gap is driven by a myriad of contributing factors28Why does closing the gender gap matter for growth?35Policy recommendations to enhance women’s economic participation37Strengthen the care system38Support women’s skills development to access better paying jobs39Tackle discrimination39Offer flexible work arrangement40 List of Boxes Box1.Quality of spending linked to gender in Cabo Verde6Box2.Remittances in Cabo Verde11Box3.Gender-responsive tourism in Cabo Verde24Box4.Job quality in Cabo Verde33Box5.Understanding the Gender Employment Gap Index (GEGI)37 List of Figures Figure1.Services are fueling growth (contributions to growth: supply side)2Figure2.Apart hotels are increasing their share of accommodation options (share of total)2Figure3.Exports and private consumption remain key drivers of growth (contributions togrowth:demand side)3Figure4.Inflation has subsided significantly, reflecting lower food and energy prices (headline inflationmain components)4Figure5.The fiscal deficit has widened (fiscal balances)4Figure6.Revenues remain robust, despite lower non-tax revenues (revenue composition)5Figure7.Total expenditure has marginally increased (expenditure composition)5Figure8.Social sector spending is a high priority in 2024 (spending by function, percent of total)6Figure9.Public expenditure targeting gende