cipe; the Ambassador to Gabon 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

@Sao Tome and Principe:Economy

Economy-overview: This small poor island economy has become
increasingly dependent on cocoa since independence over 20 years ago.
However, cocoa production has substantially declined because of
drought and mismanagement. The resulting shortage of cocoa for export
has created a persistent balance-of-payments problem. Sao Tome has to
import all fuels, most manufactured goods, consumer goods, and a
significant amount of food. Over the years, it has been unable to
service its external debt and has had to depend on concessional aid
and debt rescheduling. 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, but economic growth has remained
sluggish. Sao Tome is also optimistic that significant petroleum
discoveries are forthcoming in its territorial waters in the oil-rich
waters of the Gulf of Guinea.

GDP: purchasing power parity-$154 million (1996 est.)

GDP-real growth rate: 1.5% (1996 est.)

GDP-per capita: purchasing power parity-$1,000 (1996 est.)

GDP-composition by sector:
agriculture: 21%
industry: 26%
services: 53% (1995 est.)

Inflation rate-consumer price index: 60% (1996 est.)

Labor force: most of population mainly engaged in subsistence
agriculture and fishing; there are shortages of skilled workers

Unemployment rate: 28% (1996 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

Industrial production growth rate: NA%

Electricity-capacity: 6,000 kW (1995)

Electricity-production: 16 million kWh (1995)

Electricity-consumption per capita: 114 kWh (1995)

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

Exports:
total value: $4.9 million (f.o.b., 1996 est.)
commo