[2020-01-02] São Tomé and Principe’s economy projected to grow by 3.5% in 2020

Source: Macauhub

The economy of São Tomé and Príncipe is expected to grow by 3.5% on year in 2020, with an inflation rate of around 6.6%, said the governor of the central bank of São Tomé and Príncipe, Américo Barros, as he summarised economic performance in 2019.

The governor added that the expected growth would be the result of the execution of the public investment programme, which has funding from the World Bank, the African Development Bank and the People’s Republic of China, “among other strategic partners for São Tomé and Príncipe.”

As accumulated inflation in November last year was 5.7% compared to 8.0% in the same period of 2018, Barros said that in 2020 he expected inflation of around 6.6 %, which he considers, “compatible with the contraction of the money supply by 5.2%,” according to the STP-Press news agency.

The governor, after expressing concern that GDP growth in the country did not exceed 1.5% in 2019, said that the evolution of external accounts is also a concern, “to the extent that net international reserves cover only 1.6 months of imports.”

“The international economic climate in 2019 was, in fact, quite adverse for the São Tomé economy,” said Barros, stressing that “in the current context, GDP growth will be sustained mainly by the positive evolution of tourism and agriculture.”