Sao Tome and Principe’s GDP rises 4 to 5 pct in 2009

31 December 2009

Sao Tome, Sao Tome and Principe, 31 Dec – The governor of the central bank of Sao Tome and Principe said that the Sao Tome Gross Domestic Product (GDP) had seen growth of between 4 and 5 percent in 2009.

Luis de Sousa said that the construction, retail and communications sectors, along with foreign direct investment, had driven the archipelago’s economic growth, which was still considered to be “insufficient to ensure quality and social well being,” of the population.

The governor of the central bank noted, however, that “the contribution of the agricultural sector to national economic growth remains quite weak.”
According to Luis de Sousa, inflation was at it lowest for the last seven years, at between 15 and 16 percent.

For 2010 the Sao Tome banking authority projects economic growth of between 4 and 5 percent, a drop in annual inflation to between 10 and 11 percent and maintenance of national reserves at a minimum of four months of goods and services imports.

“The exchange rate of the dobra, via fixed parity with the euro, which will come into force on 1 January, 2010, is a way of providing greater confidence, stability and opportunities to the Sao Tome economy,” the governor said. (macauhub)