Economy - overview:
The economy of São Tomé and Príncipe is small, based mainly on agricultural production, and, since independence in 1975, increasingly dependent on the export of cocoa beans. Cocoa production has substantially declined in recent years because of drought and mismanagement. Sao Tome depends heavily on imports of food, fuels, most manufactured goods, and consumer goods, and changes in commodity prices affect the country’s inflation rate. Maintaining control of inflation, fiscal discipline, and increasing flows of foreign direct investment into the nascent oil sector are major economic problems facing the country. In recent years the government has attempted to reduce price controls and subsidies. In 2017, several business-related laws were enacted that aim to improve the business climate.

São Tomé and Príncipe has had difficulty servicing its external debt and has relied heavily on concessional aid and debt rescheduling. In April 2011, the country completed a Threshold Country Program with The Millennium Challenge Corporation to help increase tax revenues, reform customs, and improve the business environment. In 2016, Sao Tome and Portugal signed a five-year cooperation agreement worth approximately $64 million, some of which will be provided as loans. In 2017, China and São Tomé signed a mutual cooperation agreement in areas such as infrastructure, health, and agriculture worth approximately $146 million over five years.

Considerable potential exists for development of tourism, and the government has taken steps to expand tourist facilities in recent years. Potential also exists for the development of petroleum resources in São Tomé and Príncipe's territorial waters in the oil-rich Gulf of Guinea, some of which are being jointly developed in a 60-40 split with Nigeria, but production is at least several years off.

Volatile aid and investment inflows have limited growth, and poverty remains high. Restricteded capacity at the main port increases the periodic risk of shortages of consumer goods. Contract enforcement in the country’s judicial system is difficult. The IMF in late 2016 expressed concern about vulnerabilities in the country’s banking sector, although the country plans some austerity measures in line with IMF recommendations under their three year extended credit facility. Deforestation, coastal erosion, poor waste management, and misuse of natural resources also are challenging issues.

GDP (purchasing power parity):
$686 million (2017 est.)
$660.4 million (2016 est.)
$633.9 million (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 208
[see also: GDP country ranks ]

GDP (official exchange rate):
$393 million (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
3.9% (2017 est.)
4.2% (2016 est.)
3.8% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 83
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$3,200 (2017 est.)
$3,200 (2016 est.)
$3,100 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 191
[see also: GDP - per capita country ranks ]

Gross national saving:
18.7% of GDP (2017 est.)
21% of GDP (2016 est.)
19.3% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 107
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 81.4% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 17.6% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 33.4% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 7.9% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -40.4% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 11.8% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 14.8% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 73.4% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

Industries:
light construction, textiles, soap, beer, fish processing, timber

Industrial production growth rate:
5% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 57
[see also: Industrial production growth rate country ranks ]

Labor force:
72,600 (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 186
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 26.1%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 21.4%
[see also: Labor force - by occupation - industry country ranks ]
services: 52.5% (2014 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
12.2% (2017 est.)
12.6% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 163
[see also: Unemployment rate country ranks ]

Population below poverty line:
66.2% (2009 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: NA
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: NA
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
30.8 (2010 est.)
32.1 (2000 est.)
country comparison to the world (CIA rank, may be based on non-current data): 129
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 103 million (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 112.4 million (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
26.2% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 114
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-2.4% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 113
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
88.4% of GDP (2017 est.)
93.1% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 27
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
5.7% (2017 est.)
5.4% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 182
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
16% (31 December 2009)
28% (31 December 2008)
country comparison to the world (CIA rank, may be based on non-current data): 11
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
19.61% (31 December 2017 est.)
19.59% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 15
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$75.38 million (31 December 2017 est.)
$64.95 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 189
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$75.38 million (31 December 2017 est.)
$64.95 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 194
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$96.03 million (31 December 2017 est.)
$73.35 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 188
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
NA
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$32 million (2017 est.)
-$23 million (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 76
[see also: Current account balance country ranks ]

Exports:
$15.6 million (2017 est.)
$9.31 million (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 215
[see also: Exports country ranks ]

Exports - partners:
Guyana 43.7%, Germany 23.6%, Portugal 6%, Netherlands 5.5%, Poland 4.4% (2017)

Exports - commodities:
cocoa 68%, copra, coffee, palm oil (2010 est.)

Imports:
$127.7 million (2017 est.)
$119.1 million (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 213
[see also: Imports country ranks ]

Imports - commodities:
machinery and electrical equipment, food products, petroleum products

Imports - partners:
Portugal 54.7%, Angola 16.5%, China 5.6% (2017)

Reserves of foreign exchange and gold:
$58.95 million (31 December 2017 est.)
$61.5 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 185
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$292.9 million (31 December 2017 est.)
$308.5 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 185
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$469.5 million (31 December 2017 est.)
$430.3 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 130
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$3.98 million (31 December 2017 est.)
$2.2 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 117
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
dobras (STD) per US dollar -
22,689 (2017 est.)
21,797 (2016 est.)
22,149 (2015 est.)
22,091 (2014 est.)
18,466 (2013 est.)