Sao Tome and Principe’s economy posts growth of 4.5 pct in 2010

30 December 2010

Sao Tome, Sao Tome and Principe, 30 Dec – The Sao Tome and Principe economy posted growth of 4.5 percent in 2010, or half a percentage point more than in 2009, the governor of the country’s central bank said Wednesday in Sao Tome.

Luís de Sousa, governor of the Central Bank of Sao Tome and Principe (BCSTP), said that the growth had been due to growth of the financial sector associated to the construction, consumer and retail sectors which, similarly to the last few years, are the main drivers of growth.

According to the governor of the BCSTP, the value of cocoa exports rose “slightly” in 2010, thanks to a rise of the “international price of organic cocoa, which still has little weight in GDP.”

Economic prospects for 2011, Sousa said, due to uncertainties affecting the world economy, “are not very encouraging.”

“The central bank will continue to act based on a macroeconomic policy that outlines economic growth of over 5 percent, a reduction of annual inflation to levels of between 7 and 8 percent, and keeping foreign reserves at a minimum level of four months of imports of goods and services. (macauhub)