Economy of São Tomé and Príncipe

Economy of São Tomé and Príncipe

A market place located in the capital city of São Tomé
Currency	São Tomé and Príncipe Dobra (STD)
Fiscal year	Calendar Year
Statistics
GDP	$351.1 million (PPP) (2016 est.) Rank: 217 (2012 est.)
GDP growth	4.0% (2016 est.)
GDP per capita	$2,993.4 (PPP) (2012 est.) Rank: 186 (2012 est.)[1]
GDP by sector	agriculture (13.9%) industry (19.5%) services (66.5%) (2012 est.)
Inflation (CPI)	5.8% (2017 est.)
Population below poverty line	66.2% (2009 est.)
Labour force	52,490 (2007 est.)
Labour force by occupation	Population mainly engaged in subsistence agriculture and fishing (note: shortages of skilled workers)
Main industries	light construction, textiles, soap, beer, fish processing, timber
Ease-of-doing-business rank	162nd (2017)[2]
External
Exports	$11.7 million (2012 est.)
Export goods	cocoa, copra, coffee, palm oil
Main export partners	Netherlands 32.7%  Belgium 21.4%  Spain 10.8%  Nigeria 5.7%  United States 5.0% (2012 est.)[3]
Imports	$121.6 million (2012 est.)
Import goods	machinery, electrical equipment, petroleum products, food
Main import partners	Portugal 63.0%  Gabon 6.0% (2012 est.)[4]
Gross external debt	$299.5 million (31 December 2012 est.)
Public finances
Public debt	83.5% of GDP (2012 est.)
Revenues	$105.5 million (2012 est.)
Expenses	$131.8 million (2012 est.)
Foreign reserves	$51.58 million (31 December 2012 est.)
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

The economy of São Tomé and Príncipe, while traditionally dependent on cocoa, is experiencing considerable changes due to investment in the development of its oil industry in the oil-rich waters of the Gulf of Guinea. In 2003, the government agreed a Joint Development Zone over the area which gives Sao Tome 40% of revenues.

History

Under Portuguese colonial rule, sugar plantations were set up, and the islands were used for the transshipment of slaves.^[5]

Oil reserves

Geologists estimate that the Gulf of Guinea zone (Niger Delta province) holds more than 10 billion barrels (1.6 km³) of oil, although no reserves have yet been proved. A joint oil project with Nigeria in 2005 is likely to contribute $50 million of revenues to the government from the exploration licence signing fees. This represents four times government revenues in 2004. São Tomé is optimistic that significant petroleum discoveries under the exploration licence are forthcoming.

In 2006, the first tests in the deep-water block struck oil, but not in commercially viable quantities.^[6]

Agriculture

Since the 1800s, the economy of São Tomé and Príncipe has been based on plantation agriculture. At the time of independence, Portuguese-owned plantations occupied 90% of the cultivated area. After independence, control of these plantations passed to various state-owned agricultural enterprises. The dominant crop on São Tomé is cocoa, representing about 95% of exports. Other export crops include copra, palm kernels, and coffee.

Economic issues

The government has an economic program that is supported by the IMF, via its Extended Credit Facility arrangement.^[7]

Data

Gross domestic product: purchasing power parity - $316.9 million (2010 est.), $214 million (2003 est.)

GDP - real growth rate: 6% (2010 est.), 5% (2004 est.)

GDP - per capita: purchasing power parity - $1,800 (2010 est.), $1,200 (2003 est.)

GDP - composition by sector: (2010 est.)

• agriculture: 14.7%
• industry: 22.9%
• services: 62%

Inflation rate (consumer prices): 13% (2010 est.)

Labor force - by occupation: population mainly engaged in subsistence agriculture and fishing
note: shortages of skilled workers

Unemployment rate: 50% in the formal business sector (1998 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

Electricity - production: 15 million kWh (1998)

Electricity - production by source:

• fossil fuel: 46.67%
• hydro: 53.33%
• nuclear: 0%
• other: 0% (1998)

Electricity - consumption: 14 GWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 0 kWh (1998)

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

Exports: $13 million (2010 est.)

Exports - commodities: cocoa 80%, copra, coffee, palm oil (2009)

Exports - partners: United Kingdom 32.99%, Netherlands 26.93%, Belgium 21.04%, Portugal 4.31% (2009)

Imports: $99 million (2010 est.)

Petroleum - it needs to import all of its required petroleum^[8]

See also

• Cuisine of São Tomé and Príncipe

References

External links

• São Tome and Principe latest trade data on ITC Trade Map
• Agência Nacional do Petróleo de São Tomé e Príncipe
• CIA - The World Factbook -- Sao Tome and Principe
• Nations Encyclopedia::Sao Tome and Principe::Banking and Finance

São Tomé and Príncipe articles
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