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

_#_Flag: 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
_#_Overview: The economy has remained dependent on cocoa since the
country gained 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. The value of imports generally exceeds 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. Over the years, Sao Tome has been unable to service its external
debt, which amounts to roughly 80% 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 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: $46.0 million, per capita $380; real growth rate 1.5% (1989)

_#_Inflation rate (consumer prices): 36% (1989 est.)

_#_Unemployment rate: NA%

_#_Budget: revenues $10.2 million; expenditures $36.8 million,
including capital expenditures of $22.5 million (1989)

_#_Exports: $5.9 million (f.o.b., 1989 est.);

commodities--cocoa 85%, copra, coffee, palm oil;

partners--FRG, GDR, Netherlands, China

_#_Imports: $26.8 million (f.o.b., 1989 est.);

commodities--machinery and electrical equipment 54%, food
products 23%, other 23%;

partners--Portugal, GDR, Angola, China

_#_External debt: $110 million (1990 est.)

_#_Industrial production: growth rate 7.1% (1986)

_#_Electricity: 5,000 kW capacity; 12 million kWh produced,
100 kWh per capita (1990)

_#_Industries: light constructio