# Cabo Verde economic and fiscal pressures

> Live situation record from CLSTR: https://clstr.news/situations/cabo-verde-economic-and-fiscal-pressures
> Updated: 2026-08-25T21:11:27.000Z. Sources: 7. Developments: 2.

Cabo Verde is experiencing significant economic shifts characterized by rising import costs and expanding fiscal pressures. In July 2026, import prices surged by 21.1% year-on-year, driven largely by increases in capital goods, fuels, and chemical industries. This spike, combined with a decline in export prices, resulted in a deterioration of the country’s terms of trade.

Following these trade developments, the Public Finance Council (CFP) issued an alert regarding the 2026 Revised State Budget. The budget deficit is projected to rise to 1.9% of GDP, with total expenditure expected to increase by 8.6% over the initial budget. This fiscal expansion is attributed to new social and economic measures, including subsidies, increased social protection, and compensations for electricity and fuel costs.

## Timeline

### 2026-08-25: Cabo Verde budget deficit projected to rise to 1.9% of GDP

Cabo Verde's Public Finance Council warns that the 2026 Revised State Budget will see the deficit rise to 1.9% of GDP due to increased spending on subsidies, healthcare, and education.

3 sources. https://clstr.news/cluster/cabo-verde-budget-deficit-projected-to-rise-to-19-of-gdp

### 2026-08-20: Cabo Verde import prices surge 21.1% in July

Cabo Verde's import prices surged 21.1% in July 2025, driven by rising costs in chemicals and capital goods, while export prices fell, worsening the nation's terms of trade.

5 sources. https://clstr.news/cluster/cabo-verde-import-prices-surge-211-in-july

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Cite as: Cabo Verde economic and fiscal pressures. CLSTR, https://clstr.news/situations/cabo-verde-economic-and-fiscal-pressures