The World Bank has reclassified Cape Verde as an upper-middle-income economy, effective July 1, 2025, marking a major milestone in the nation’s development.
The upgrade follows a 16.8% surge in gross national income (GNI) per capita between 2023 and 2024, driven by robust 7.3% GDP growth fueled by tourism recovery.
Key factors include improved macroeconomic stability with lower inflation and a revised UN population estimate showing a 12.8% decline. This adjustment amplified per capita gains, lifting Cape Verde from lower-middle-income status to the $4,516–$13,845 GNI bracket. The shift may affect access to concessional financing despite symbolizing economic progress.
While celebrating the achievement, the World Bank cautioned that sustaining growth requires diversification beyond tourism—vulnerable to global shocks—and investments in infrastructure, human capital, and green energy. The government has committed to inclusive development through digital expansion and climate-resilient reforms.
Cape Verde now joins a growing cohort of African nations advancing economically post-pandemic, offering a model of resilience.
