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People   Sao Tome & Principe
Government  
Economy
Telecom  & Transportation
Military & Transitional issues

 

Economy Sao Tome and Principe
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, but strengthening prices helped boost export earnings in 2003. 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, but lacking a formal poverty reduction program with the IMF, it has not benefited from subsequent HIPC debt reductions. Sao Tome's external debt stands at over $300 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. The first production license was sold to a consortium led by US-based oil firms. Much of the 2005 budget is dependent upon the sale of additional production licenses.
GDP:
purchasing power parity - $214 million (2003 est.)
GDP - real growth rate:
6% (2004 est.)
GDP - per capita:
purchasing power parity - $1,200 (2003 est.)
GDP - composition by sector:
agriculture: 16.5%
industry: 15.4%
services: 68.1% (2004 est.)
Investment (gross fixed):
31.5% of GDP (2004 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):
14% (2004 est.)
Labor force:
NA
Labor force - by occupation:
population mainly engaged in subsistence agriculture and fishing
note: shortages of skilled workers
Unemployment rate:
NA
Budget:
revenues: $27.94 million
expenditures: $43.91 million, including capital expenditures of $54 million (2004 est.)
Agriculture - products:
cocoa, coconuts, palm kernels, copra, cinnamon, pepper, coffee, bananas, papayas, beans; poultry; fish
Industries:
light construction, textiles, soap, beer; fish processing; timber
Industrial production growth rate:
NA
Electricity - production:
17 million kWh (2002)
Electricity - production by source:
fossil fuel: 41.2%
hydro: 58.8%
nuclear: 0%
other: 0% (2001)
Electricity - consumption:
15.81 million kWh (2002)
Electricity - exports:
0 kWh (2002)
Electricity - imports:
0 kWh (2002)
Oil - production:
0 bbl/day (2001 est.)
Oil - consumption:
700 bbl/day (2001 est.)
Oil - exports:
NA
Oil - imports:
NA
Current account balance:
$-31.5 million (2004 est.)
Exports:
$6.7 million f.o.b. (2004 est.)
Exports - commodities:
cocoa 80%, copra, coffee, palm oil
Exports - partners:
Netherlands 39.1%, China 11.8%, Germany 8.6%, Belgium 6.9%, Philippines 6.7%, France 4.5% (2004)
Imports:
$41 million f.o.b. (2004 est.)
Imports - commodities:
machinery and electrical equipment, food products, petroleum products
Imports - partners:
Portugal 50.5%, Germany 10%, US 5.1%, Netherlands 4.5%, South Africa 4.2% (2004)
Reserves of foreign exchange and gold:
$29.78 million (2004 est.)
Debt - external:
$318 million (2002)
Economic aid - recipient:
$200 million in December 2000 under the HIPC program
Currency:
dobra (STD)
Currency code:
STD
Exchange rates:
dobras per US dollar - 9,900.4 (2004), 9,347.6 (2003), 9,088.3 (2002), 8,842.1 (2001), 7,978.2 (2000)
Fiscal year:
calendar year

 

 

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