Sao Tomé and Príncipe: Recent Economic Developments and Selected Issues

IMF Staff Country Reports, September 29, 1997

Source details

Canonical URL: Sao Tomé and Príncipe: Recent Economic Developments and Selected Issues

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Bibliographic details

Published: September 29, 1997
Series: IMF Staff Country Reports
DOI: https://doi.org/10.5089/9781451834970.002

Executive summary

The Selected Issues paper highlights that the financial performance of Sao Tomé and Príncipe, after improving in 1995, deteriorated again in 1996, while production continued to stagnate.
In 1995, the authorities adopted policies aimed at stabilizing the economy, which led to a significant improvement in the fiscal position.
The strengthening of control over monetary expansion made possible a reduction of end-of-period inflation to 37 percent, from 75 percent in 1994.
In 1996, fiscal slippages and the consequent monetary financing of the budget deficits resulted in a resurgence of inflation and currency depreciation.

Fiscal and monetary developments

Fiscal stance: Policies adopted in 1995 improved the fiscal position significantly; fiscal slippages occurred in 1996.
Monetary control: Strengthened control over monetary expansion in 1995 contributed to lower inflation.
Monetary financing: Monetary financing of budget deficits in 1996 accompanied fiscal slippages and drove renewed inflation and currency depreciation.

Real sector and production

Production: Continued stagnation of production through 1995–1996 despite fiscal improvements in 1995.

Thematic coverage (subjects and keywords)

Subjects: Agricultural commodities, Banking, Commercial banks, Commodities, Credit, Expenditure, Financial institutions, Foreign exchange, Money
Keywords: Agricultural commodities, balance of payments, Commercial banks, CR, Credit, enterprise, government, government contribution, government financing, ISCR, land reform, marketing enterprise, Sub-Saharan Africa, terms of trade

International Monetary Fund. "Sao Tomé and Príncipe: Recent Economic Developments and Selected Issues", IMF Staff Country Reports 1997, 081 (1997), accessed 9/13/2026, https://doi.org/10.5089/9781451834970.002