## 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](https://www.imf.org/en/publications/cr/issues/2016/12/30/sao-tom%c3%a9-and-pr%c3%adncipe-recent-economic-developments-and-selected-issues-2382)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/30/sao-tom%c3%a9-and-pr%c3%adncipe-recent-economic-developments-and-selected-issues-2382/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/30/sao-tom%c3%a9-and-pr%c3%adncipe-recent-economic-developments-and-selected-issues-2382/index.json)
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## Bibliographic details
- Published: September 29, 1997
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451834970.002

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### 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*

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/30/sao-tom%c3%a9-and-pr%c3%adncipe-recent-economic-developments-and-selected-issues-2382_