IMF Staff Country Reports

Sao Tomé and Príncipe: Recent Economic Developments and Selected Issues

Publication Date:

September 29, 1997

Summary:

This 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, however, fiscal slippages and the consequent monetary financing of the budget deficits resulted in a resurgence of inflation and currency depreciation.

Series:

Country Report No. 1997/081

Subject:

Agricultural commodities Banking Commercial banks Commodities Credit Expenditure Financial institutions Foreign exchange Money