Sao Tome and Principe Economy Profile 2008

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. Sao Tome is optimistic about the development of petroleum resources in its territorial waters in the oil-rich Gulf of Guinea, which are being jointly developed in a 60-40 split with Nigeria. 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 (purchasing power parity)

$278 million (2006 est.)

GDP (official exchange rate)

$142 million (2007 est.)

GDP - real growth rate

6.5% (2007 est.)

GDP - per capita (PPP)

$1,200 (2003 est.)

GDP - composition by sector

agriculture: 14.8%
industry: 14.2%
services: 71% (2007 est.)

Population below poverty line

54% (2004 est.)

Household income or consumption by percentage share

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

Inflation rate (consumer prices)

17% (2007 est.)

Investment (gross fixed)

43.7% of GDP (2007 est.)

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: $74.11 million
expenditures: $57.71 million (2007 est.)

Industries

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

Industrial production growth rate

8.5% (2007 est.)

Electricity - production

18 million kWh (2005)

Electricity - consumption

16.74 million kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

650 bbl/day (2005 est.)

Oil - imports

634.4 bbl/day (2004)

Oil - exports

0 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$58 million (2007 est.)

Agriculture - products

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

Exports

$4 million f.o.b. (2007 est.)

Exports - commodities

cocoa 80%, copra, coffee, palm oil

Exports - partners

Netherlands 47.9%, Belgium 19%, Portugal 9.3% (2006)

Imports

$73 million f.o.b. (2007 est.)

Imports - commodities

machinery and electrical equipment, food products, petroleum products

Imports - partners

Portugal 48.8%, France 19.7%, Belgium 5.1%, US 5.1% (2006)

Reserves of foreign exchange and gold

$36 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)

Exchange rates

dobras per US dollar - 13,700 (2007), 12,050 (2006), 9,900.4 (2005), 9,902.3 (2004), 9,347.6 (2003)

Fiscal year

calendar year