Overview: The economy has remained dependent on cocoa since gaining independence nearly 15 years ago. Since then, however, cocoa production has gradually deteriorated because of drought and mismanagement, so that by 1987 output had fallen to less than 50% of its former levels. As a result, a shortage of cocoa for export has created a serious balance-of-payments problem. Production of less important crops, such as coffee, copra, and palm kernels, has also declined. In 1987 the value of imports exceeded that of exports by a ratio of 4 to 1. The emphasis on cocoa production at the expense of other food crops has meant that Sao Tome has to import 90% of food needs. It also has to import all fuels and most manufactured goods. In 1987 Sao Tome was unable to service its external debt, which amounted to 78% of export earnings. Considerable potential exists for development of a tourist industry, and the government has taken steps to expand facilities in recent years. The government has also implemented a Five-Year Plan covering 1986-90 to restructure the economy and reschedule external debt service payments in cooperation with the International Development Association and Western lenders.

GDP: $37.9 million, per capita $340; real growth rate 1.8% (1986)

Inflation rate (consumer prices): 4.2% (1986)

Unemployment rate: NA%

Budget: revenues $19.2 million; expenditures $25.1 million, including capital expenditures of $19.9 million (1987)

Exports: $9.8 million (f.o.b., 1987 est.); @m5commodities--cocoa 90%, copra, coffee, palm oil; @m5partners--NA

Imports: $2.6 million (c.i.f., 1987 est.); @m5commodities--machinery and electrical equipment 59%, food products 32%, fuels 9%; @m5partners--Portugal, US, FRG, GDR

External debt: $72 million (1985)

Industrial production: growth rate 7.1% (1986)

Electricity: 6,000 kW capacity; 7 million kWh produced, 60 kWh per capita (1988)

Industries: light construction, shirts, soap, beer, fisheries, shrimp processing

Agriculture: cocoa, copra, coconuts, coffee, palm oil, bananas

Aid: NA

Currency: dobra (plural--dobras); 1 dobra (Db) = 100 centimos

Exchange rates: dobras (Db) per US$1--35.408 (July 1987), NA (1987), 36.993 (1986), 41.195 (1985)

Fiscal year: calendar year

NOTE: The information regarding Sao Tome and Principe on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Sao Tome and Principe Economy 1989 information contained here. All suggestions for corrections of any errors about Sao Tome and Principe Economy 1989 should be addressed to the CIA.