Economy - overview This small poor island economy has become increasingly dependent on cocoa since independence over 20 years ago. However, cocoa production has substantially declined because of drought and mismanagement. The resulting shortage of cocoa for export has created a persistent balance-of-payments problem. Sao Tome has to import all fuels, most manufactured goods, consumer goods, and a significant amount of food. Over the years, it has been unable to service its external debt and has had to depend on concessional aid and debt rescheduling. 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, but economic growth has remained sluggish. Sao Tome is also optimistic that significant petroleum discoveries are forthcoming in its territorial waters in the oil-rich waters of the Gulf of Guinea.

GDP purchasing power parity - $154 million (1996 est.)

GDP - real growth rate 1.5% (1996 est.)

GDP - per capita purchasing power parity - $1,000 (1996 est.)

GDP - composition by sector
agriculture: 21%
industry: 26%
services: 53% (1995 est.)

Inflation rate - consumer price index 60% (1996 est.)

Labor force most of population mainly engaged in subsistence agriculture and fishing; there are shortages of skilled workers

Unemployment rate 28% (1996 est.)

Budget
revenues: $58 million
expenditures: $114 million, including capital expenditures of $54 million (1993 est.)

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

Industrial production growth rate NA%

Electricity - capacity 6,000 kW (1995)

Electricity - production 16 million kWh (1995)

Electricity - consumption per capita 114 kWh (1995)

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

Exports
total value: $4.9 million (f.o.b., 1996 est.)
commodities: cocoa 95%, copra, coffee, palm oil
partners: Netherlands 75.7%, Germany 1.2%, Portugal 1.1%

Imports
total value: $19.6 million (c.i.f., 1996 est.)
commodities: machinery and electrical equipment, food products, petroleum products
partners: Portugal 32.2%, France 16.8%, Belgium 6.6%, Japan, Angola

Debt - external $266 million (1996)

Economic aid
recipient: ODA, $NA

Currency 1 dobra (Db) = 100 centimos

Exchange rates dobras (Db) per US$1 - 7,003.9 (December 1997), 4,552.5 (1997), 2,203.2 (1996), 1,420.3 (1995), 732.6 (1994), 429.9 (1993)

Fiscal year calendar year

NOTE: The information regarding Sao Tome and Principe on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Sao Tome and Principe Economy 1998 information contained here. All suggestions for corrections of any errors about Sao Tome and Principe Economy 1998 should be addressed to the CIA.