Sao Tome and Principe flag

The Economy of Sao Tome and Principe

Sao Tomean Economy

Sao Tome and Principe's map

Economy - overview: This small, poor island economy has become increasingly dependent on cocoa since independence in 1975. Cocoa production has substantially declined in recent years because of drought and mismanagement. Sao Tome has to import all fuels, most manufactured goods, consumer goods, and a substantial amount of food. Over the years, it has had difficulty servicing its external debt and has relied heavily on concessional aid and debt rescheduling. Sao Tome benefited from $200 million in debt relief in December 2000 under the Highly Indebted Poor Countries (HIPC) program, which helped bring down the country's $300 million debt burden. In August 2005, Sao Tome signed on to a new 3-year IMF Poverty Reduction and Growth Facility (PRGF) program worth $4.3 million. Considerable potential exists for development of a tourist industry, and the government has taken steps to expand facilities in recent years. The government also has attempted to reduce price controls and subsidies. Potential exists for the development of petroleum resources in Sao Tome's territorial waters in the oil-rich Gulf of Guinea, which are being jointly developed in a 60-40 split with Nigeria, but any actual production is at least several years off. The first production licenses were sold in 2004, though a dispute over licensing with Nigeria delayed Sao Tome's receipt of more than $20 million in signing bonuses for almost a year. Real GDP growth exceeded 6% in 2007, as a result of increases in public expenditures and oil-related capital investment.

GDP:

GDP - real growth rate: 5.5% (2008 est.) 6% (2007 est.) 6.7% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 14.6% industry: 14.6% services: 70.8% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

Distribution of family income - Gini index:

Inflation rate (consumer prices):

Labor force: 35,050 (1991)

Labor force - by occupation: note: population mainly engaged in subsistence agriculture and fishing; shortages of skilled workers

Unemployment rate: NA%

Budget: revenues: $47.65 million expenditures: $51.48 million (2008 est.)

Industries: light construction, textiles, soap, beer, fish processing, timber

Industrial production growth rate: 9.5% (2008 est.)

Electricity - production: 18 million kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 16.74 million kWh (2006 est.)

Electricity - exports: 0 kWh (2007)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 0 bbl/day (2007 est.)

Oil - consumption: 660 bbl/day (2006 est.)

Oil - exports: 0 bbl/day (2005)

Oil - imports: 659.5 bbl/day (2005)

Oil - proved reserves: 0 bbl (1 January 2006 est.)

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 0 cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 0 cu m (1 January 2006 est.)

Agriculture - products: cocoa, coconuts, palm kernels, copra, cinnamon, pepper, coffee, bananas, papayas, beans; poultry; fish

Exports: $9 million f.o.b. (2008 est.)

Exports - commodities: cocoa 80%, copra, coffee, palm oil

Exports - partners: Netherlands 23.7%, Belgium 23.7%, France 12.9%, US 5.9%, Portugal 4.1% (2007)

Imports: $91 million f.o.b. (2008 est.)

Imports - commodities: machinery and electrical equipment, food products, petroleum products

Imports - partners: Portugal 62.2%, US 11.6%, Gabon 4.5% (2007)

Debt - external: $318 million (2002)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: dobras (STD) per US dollar - 14,900 (2008 est.), 13,700 (2007), 12,050 (2006), 9,900.4 (2005), 9,902.3 (2004)

Fiscal year: