bon is accredited to Sao Tome and Principe on a
nonresident basis and makes periodic visits to the islands

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. 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, which helped 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 exceeded 6% in 2007, as a result of
increases in public expenditures and oil-related capital investment.

GDP (purchasing power parity):

$256 million (2007 est.)

GDP (official exchange rate):

$144 million (2007 est.)

GDP - real growth rate:

6% (2007 est.)

GDP - per capita (PPP):

$1,600 (2007 est.)

GDP - composition by sector:

agriculture: 14.9%
industry: 14%
services: 71% (2007 est.)

Labor force:

35,050 (1991)

Labor force - by occupation:

note: population mainly engaged in subsistence agriculture and
fishing; shortages of skilled workers

Unemployment rate:

NA%

Population