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Sao Tome and Principe Economy Profile

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Economy - overview

The economy of São Tomé and Príncipe is small, based mainly on agricultural production, and, since independence in 1975, increasingly dependent on the export of cocoa beans. Cocoa production has substantially declined in recent years because of drought and mismanagement. Sao Tome depends heavily on imports of food, fuels, most manufactured goods, and consumer goods, and changes in commodity prices affect the country’s inflation rate. Maintaining control of inflation, fiscal discipline, and increasing flows of foreign direct investment into the nascent oil sector are major economic problems facing the country. In recent years the government has attempted to reduce price controls and subsidies. In 2017, several business-related laws were enacted that aim to improve the business climate.

São Tomé and Príncipe has had difficulty servicing its external debt and has relied heavily on concessional aid and debt rescheduling. In April 2011, the country completed a Threshold Country Program with The Millennium Challenge Corporation to help increase tax revenues, reform customs, and improve the business environment. In 2016, Sao Tome and Portugal signed a five-year cooperation agreement worth approximately $64 million, some of which will be provided as loans. In 2017, China and São Tomé signed a mutual cooperation agreement in areas such as infrastructure, health, and agriculture worth approximately $146 million over five years.

Considerable potential exists for development of tourism, and the government has taken steps to expand tourist facilities in recent years. Potential also exists for the development of petroleum resources in São Tomé and Príncipe's territorial waters in the oil-rich Gulf of Guinea, some of which are being jointly developed in a 60-40 split with Nigeria, but production is at least several years off.

Volatile aid and investment inflows have limited growth, and poverty remains high. Restricteded capacity at the main port increases the periodic risk of shortages of consumer goods. Contract enforcement in the country’s judicial system is difficult. The IMF in late 2016 expressed concern about vulnerabilities in the country’s banking sector, although the country plans some austerity measures in line with IMF recommendations under their three year extended credit facility. Deforestation, coastal erosion, poor waste management, and misuse of natural resources also are challenging issues.

GDP (purchasing power parity)$853 million (2019 est.)

$842 million (2018 est.)

$818 million (2017 est.)

note: data are in 2010 dollars
GDP (official exchange rate)$0 (2018 est.)
GDP - real growth rate3.9% (2017 est.)

4.2% (2016 est.)

3.8% (2015 est.)
GDP - per capita (PPP)$3,970 (2019 est.)

$3,993 (2018 est.)

$3,953 (2017 est.)

note: data are in 2010 dollars
Gross national saving18.7% of GDP (2017 est.)

21% of GDP (2016 est.)

19.3% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 81.4% (2017 est.)

government consumption: 17.6% (2017 est.)

investment in fixed capital: 33.4% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 7.9% (2017 est.)

imports of goods and services: -40.4% (2017 est.)
GDP - composition by sectoragriculture: 11.8% (2017 est.)

industry: 14.8% (2017 est.)

services: 73.4% (2017 est.)
Ease of Doing Business Index scoresOverall score: 45 (2020)

Starting a Business score: 78.2 (2020)

Trading score: 66 (2020)

Enforcement score: 28.8 (2020)
Population below poverty line66.7% (2017 est.)
Labor force72,600 (2017 est.)
Labor force - by occupationagriculture: 26.1%

industry: 21.4%

services: 52.5% (2014 est.)
Unemployment rate12.2% (2017 est.)

12.6% (2016 est.)
Unemployment, youth ages 15-24total: 20.8%

male: NA

female: NA (2012 est.)
Household income or consumption by percentage sharelowest 10%: NA

highest 10%: NA
Distribution of family income - Gini index56.3 (2017 est.)

32.1 (2000 est.)
Budgetrevenues: 103 million (2017 est.)

expenditures: 112.4 million (2017 est.)
Taxes and other revenues26.2% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-2.4% (of GDP) (2017 est.)
Public debt88.4% of GDP (2017 est.)

93.1% of GDP (2016 est.)
Inflation rate (consumer prices)7.8% (2018 est.)

5.6% (2017 est.)

5.7% (2017 est.)
Agriculture - productsplantains, oil palm fruit, coconuts, taro, bananas, fruit, cocoa, yams, cassava, maize
Industrieslight construction, textiles, soap, beer, fish processing, timber
Industrial production growth rate5% (2017 est.)
Current Account Balance-$32 million (2017 est.)

-$23 million (2016 est.)
Exports$15.6 million (2017 est.)

$9.31 million (2016 est.)
Exports - commoditiesgas turbines, cocoa beans, aircraft parts, iron products, chocolate (2019)
Exports - partnersSingapore 30%, Switzerland 24%, France 11%, Poland 7%, Belgium 7%, United States 5% (2019)
Imports$127.7 million (2017 est.)

$119.1 million (2016 est.)
Imports - commoditiesrefined petroleum, cars, rice, flavored water, postage stamps (2019)
Imports - partnersPortugal 41%, Angola 17%, China 8% (2019 )
Reserves of foreign exchange and gold$58.95 million (31 December 2017 est.)

$61.5 million (31 December 2016 est.)
Debt - external$292.9 million (31 December 2017 est.)

$308.5 million (31 December 2016 est.)
Exchange ratesdobras (STD) per US dollar -

22,689 (2017 est.)

21,797 (2016 est.)

22,149 (2015 est.)

22,091 (2014 est.)

18,466 (2013 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on September 18, 2021