Sao Tome and Principe Economy Profile 2009

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 averaged about 6% in 2006-08, as a result of increases in public expenditures and oil-related capital investment.

GDP (purchasing power parity)

$276.5 million (2008 est.)
$262.1 million (2007 est.)
$247.2 million (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$176 million (2008 est.)

GDP - real growth rate

5.5% (2008 est.)
6% (2007 est.)
6.7% (2006 est.)

GDP - per capita (PPP)

$1,300 (2008 est.)
$1,300 (2007 est.)
$1,300 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 14.6%
industry: 14.6%
services: 70.8% (2008 est.)

Population below poverty line

54% (2004 est.)

Labor force

52,490 (2007)

Labor force - by occupation

note: population mainly engaged in subsistence agriculture and fishing; shortages of skilled workers

Unemployment rate

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Investment (gross fixed)

38.8% of GDP (2008 est.)

Budget

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

Inflation rate (consumer prices)

23% (2008 est.)
18% (2007 est.)

Central bank discount rate

NA% (31 December 2008)
28% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
32.4% (31 December 2007)

Stock of money

$NA (31 December 2008)
$19.99 million (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$33.5 million (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$31.84 million (31 December 2007)

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

fossil fuel: 41.2%
hydro: 58.8%
nuclear: 0%
other: 0% (2001)

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 - imports

659.5 bbl/day (2005)

Oil - exports

0 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.)

Current Account Balance

-$68 million (2008 est.)
-$44 million (2007 est.)

Agriculture - products

cocoa, coconuts, palm kernels, copra, cinnamon, pepper, coffee, bananas, papayas, beans; poultry; fish

Exports

$8 million (2008 est.)
$7 million (2007 est.)

Exports - commodities

cocoa 80%, copra, coffee, palm oil

Exports - partners

Japan 75.5%, Belgium 7.5%, Netherlands 6.2% (2008)

Imports

$88 million (2008 est.)
$65 million (2007 est.)

Imports - commodities

machinery and electrical equipment, food products, petroleum products

Imports - partners

Portugal 55.9%, Belgium 9.6%, Japan 9.3% (2008)

Reserves of foreign exchange and gold

$43 million (31 December 2008 est.)
$39 million (31 December 2007 est.)

Debt - external

$318 million (2002)

Market value of publicly traded shares

$NA

Economic aid - recipient

$31.9 million in December 2000 under the Heavily Indebted Poor Country Initiative (HIPC) program (2005)

Currency (code)

dobra (STD)

Currency (code)

STD

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

calendar year