Economy - overview: This small poor island economy has become increasingly dependent on cocoa since independence 25 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. Corruption scandals continue to weaken the economy.
GDP: purchasing power parity - $169 million (1999 est.)
GDP - real growth rate: 1.5% (1999 est.)
GDP - per capita: purchasing power parity - $1,100 (1999 est.)
GDP - composition by sector: agriculture: 23% industry: 19% services: 58% (1997 est.)
Population below poverty line: NA%
Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%
Inflation rate (consumer prices): 10.5% (yearend 1999 est.)
Labor force: NA
Labor force - by occupation: population mainly engaged in subsistence agriculture and fishing note: shortages of skilled workers