Cabo Verde's economy experienced a significant rebound in 2024, with growth reaching 7.3% driven by the robust performance of the service sector, particularly tourism, and a recovery in agricultural activity after years of drought. The service sector contributed 70% of overall growth, with tourist arrivals increasing by 16.5% to 1.18 million visitors. Inflation moderated to 1.0%, and poverty decreased to 14.4%. However, despite these advancements, gender disparities persist in the labor market. Women's labor force participation is significantly lower than men's (68.9% vs. 82.3%), and they face a considerable gender wage gap of 13.9% to 14.4%, even when controlling for hours worked. The gap is attributed to occupational segregation, with women overrepresented in lower-skill occupations, and the disproportionate burden of unpaid care work. Addressing these gaps is crucial for sustainable and inclusive growth, as closing gender gaps could increase GDP by up to 12.2%. The report recommends strengthening the care system by improving childcare services, supporting women's skills development in STEM, tourism, and TVET, and tackling discrimination through equal pay legislation and challenging gender stereotypes. Additionally, offering flexible work arrangements can help women balance career and family responsibilities.
