Development of Sao Tome and Principe’s Economy in first half of 2009 is positive, IMF says

25 September 2009

Sao Tome, Sao Tome and Principe, 25 Sept – A mission from the International Monetary Fund (IMF) said Thursday that the performance of the Sao Tome and Principe economy had been positive in the first half of 2009.

The IMF mission, which for two weeks assessed the Sao Tome and Principe’s macroeconomic performance, said that the positive development of the economy was due to the archipelago’s currency being linked to the euro and to the fall in the price of oil, which were also favouring a drop in inflation.

The head of the IMF mission, Tsidid Tsikata, said that currently “the situation is recovering due to several projects, specifically the (deep water) port project which has outside aid. Therefore, we consider that as of 2010 we will see that trend of better growth and more development.”

Despite the positive signs the mission also noted that there had been a “slowdown” in economic growth on the archipelago, due to a lack of foreign financial aid.

“We found that growth slowed essentially because of some delays and problems in delivery of foreign financial aid,” said Tsikata.

Until August of this year Sao Tome and Principe’s inflation totalled 9.3 percent. (macauhub)