Democratic Republic of Sao Tome and Principe : Third and Fourth Reviews under the Extended Credit Facility Arrangement, Extension of the Arrangement, and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive…

Author/Editor:

International Monetary Fund. African Dept.

Publication Date:

December 18, 2017

Electronic Access:

Free Full Text (PDF file size is 3292 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The economy is expected to grow at a steady pace of 4 percent in 2017, albeit slower than projected at the second review. Over the medium term, growth is projected to accelerate to 5½ percent, spurred by tourism, agriculture, and externally-funded investment. Meanwhile, excessive rainfall damaged some crops and raised the price of locally-produced food. Consequently, inflation is expected to increase to 6 percent at end-2017, from 5.1 percent at end-2016. Program implementation is broadly back on track. After missing the end-2016 fiscal targets by large margins, the government adopted corrective measures and met all five end-June 2017 performance criteria (PCs). The implementation of structural reforms under the program is progressing, albeit at a much slower pace than anticipated due mainly to capacity constraints and delays in the delivery of technical assistance (TA).