The economy of São Tomé and Príncipe faces serious challenges and experiences major imbalances, slow growth and high inflation, the International Monetary Fund (IMF) believes.
This conclusion results from a visit to that Lusophone country from February 9 to 23 of this year by an IMF team led by the head of mission for São Tomé and Príncipe, Slavi Slavov, in which they discussed with the country’s authorities the institution’s support to its policy and reform plans.
According to a statement published this Thursday on the IMF website and consulted by Forbes Lusophone Africa, at the end of the visit, Slavi Slavov noted that economic conditions in São Tomé and Príncipe are challenging.
“Long-standing socio-economic vulnerabilities have been exacerbated by the Covid-19 pandemic, persistent energy shortages, floods in late 2021 and early 2022, and a sharp increase in global food and fuel prices,” the IMF staff member said.
As a result, the official said, growth in 2022 has slowed to about 0.9%, below the average of about 4% in previous years, inflation has reached 25.6% from January last year to the same month in 2023, and international reserves have fallen substantially.
The International Monetary Fund team positively notes the commitment of São Tomé’s government to implement the necessary policies to restore macroeconomic stability, improve the population’s living conditions, and promote economic recovery and sustainable and inclusive growth.
With information from Forbes