Flag description:
three horizontal bands of green (top), yellow (double width), and
green with two black five-pointed stars placed side by side in the
center of the yellow band and a red isosceles triangle based on the
hoist side; uses the popular pan-African colors of Ethiopia
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, and is expected
to benefit from an additional round of HIPC debt relief in early
2006, to help bring down the country's $300 million debt burden. In
August 2005, Sao Tome signed on to a new 3-year IMF Poverty
Reduction and Growth Facility (PRGF) program worth $4.3 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, which are being jointly developed in a 60-40 split with
Nigeria. The first production licenses were sold in 2004, though a
dispute over licensing with Nigeria delayed Sao Tome's receipt of
more than $20 million in signing bonuses for almost a year. Real GDP
growth reached 6% in 2004, and also probably in 2005, as a result of
increases in public expenditures and oil-related capital investment.
GDP (purchasing power parity):
$214 million (2003 est.)
GDP (official exchange rate):
$71.38 million
GDP - real growth rate:
6% (2004 est.)
GDP - per capita (PPP):
$1,200 (2003 est.)
GDP - composition by sector: agriculture: 16.7% industry: 14.8% services: 68.4% (2005 est.)
Labor force: 35,050
Labor force - by occupation: note: population mainly engaged in subsistence agriculture and fishing; shortages of skilled workers