Sao Tome & Principe Economy

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: 0.8% (2004)

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.)

Population below poverty line: 54% (2004 est.)

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: 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.)

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

Industrial production growth rate: NA

Electricity - production: 17 million kWh (2002)

Electricity - production by source:

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

Oil - proved reserves:

Natural gas - production:

Natural gas - consumption:

Natural gas - exports:

Natural gas - imports:

Natural gas - proved reserves:

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

Exports: $6.7 million f.o.b. (2004 est.)

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

Exports - partners: Netherlands 35.9%, China 12.3%, Belgium 7.4%, Germany 6.3%, Poland 5.1%, France 4.8%, Thailand 4.1% (2004)

Imports: $41 million f.o.b. (2004 est.)

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

Imports - partners: Portugal 52.3%, Germany 9.5%, US 6%, Netherlands 4.8%, South Africa 4.3%, Belgium 4.1% (2004)

Debt - external: $318 million (2002)

Economic aid - recipient: $200 million in December 2000 under the HIPC program

Currency:

Currency code:

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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Areas in Sao Tome & Principe: Príncipe | São Tomé