Economy - overview:
This small poor island economy has become increasingly dependent on
cocoa since independence 29 years ago. 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 been unable to service its external debt and has had to depend
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. Sao Tome's success in
implementing structural reforms has been rewarded by international
donors, who pledged increased assistance in 2001. 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;
production could begin as early as 2004.
GDP:
purchasing power parity - $214 million (2003 est.)
GDP - real growth rate:
5% (2003 est.)
GDP - per capita:
purchasing power parity - $1,200 (2003 est.)
GDP - composition by sector: agriculture: 19.6% industry: 17.8% services: 62.6% (2003 est.)
Investment (gross fixed):
51.6% of GDP (2003)
Population below poverty line:
54% NA (2004 est.)
Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA
Inflation rate (consumer prices):
9% (2003 est.)
Labor force:
NA