ncipe, 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 4:1. 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.
National product:
GDP - exchange rate conversion - $41.4 million (1992 est.)
National product real growth rate:
1.5% (1992 est.)
National product per capita:
$315 (1992 est.)
Inflation rate (consumer prices):
27% (1992 est.)
Unemployment rate:
NA%
Budget:
revenues $10.2 million; expenditures $36.8 million, including capital
expenditures of $22.5 million (1989)
Exports:
$5.5 million (f.o.b., 1991 est.)
commodities:
cocoa 85%, copra, coffee, palm oil
partners:
Germany, Netherlands, China
Imports:
$24.5 million (f.o.b., 1991)
commodities:
machinery and electrical equipment 54%, food products 23%, other 23%
partners:
Portugal, Germany, Angola, China
External debt:
$163.6 million (1992)
Industrial production:
growth rate 7.1% (1986)
Electricity:
5,000 kW capacity; 10 million kWh produced, 80 kWh per capita (1991)
Industries:
light construction, shirts, soap, beer, fisheries, shrimp processing
Agriculture:
dominant sector of economy, primary source of exports; cash crops - cocoa
(85%), coconuts, palm kernels, coffee; food products - bananas, papaya,
beans, poultry, fish; not self-sufficient in food grain and meat