Sao Tome’s economy expected to post growth of 5 pct in 2014, IMF says

27 March 2014

The economy of Sao Tome and Principe should post growth of 5 percent in 2014, according to the latest projections from the International Monetary Fund (IMF).

In a document published recently in Washington, the IMF said that Sao Tome and Principe’s economic performance would remain conditioned by a weak outlook for external funding for the country’s investment projects.

The international organisation estimates that inflation will reach 6 percent by the end of 2014 and noted the “prudent focus on fiscal policy along with pegging of the local currency, the dobra, to the euro.”

The IMF said that growth of the economy in 2013 is expected to have reached 4 percent, or no change on 2012.

According to the IMF, the country’s dependence on external aid remained high, and warned of a high risk of Sao Tome and Principe becoming over-indebted. (macauhub)