Sao Tome and Principe’s economic performance is positive, IMF says

10 January 2014

Sao Tome and Principe’s economic performance is positive the International Monetary Fund (IMF) said recently noting that more measures were needed to maintain the sustainability of the archipelago’s macroeconomic aggregates.

The document said that the coalition government, which has been in power since 12 December 2012, remains focused on implementing the solid policies, needed to consolidate macroeconomic stability and by June of last year had achieved almost all the quantitative criteria.

According to the IMF more time is needed to prepare a detailed plan to eliminate payment delays although it notes that the 2014 Budget restates the government’s commitment to fiscal prudence.

The Sao Tome authorities agreed with the analysis presented in the report, which also outlines an economic scenario that does not include development of the oil industry, following the decision by French company total to leave Block 1 of the joint exploration zone with Nigeria.

However, the Sao Tome government remains optimistic about the possibility of developing an oil industry given the interest shown by several companies in taking Total’s place.

The authorities also noted the importance of recently signing an agreement for joint production in the Exclusive Economic Zone (EEZ) and the possibility of offshore exploration together with Equatorial Guinea, the report said. (macauhub)