The Governor of the Central Bank, Américo Ramos, confirmed that São Tomé and Príncipe’s economy failed to grow in 2024, maintaining stagnation at zero for the second consecutive year. This follows a contraction of 0.3% in 2023.
Earlier in the year, Prime Minister Patrice Trovoada had expressed optimism, projecting 2.9% growth for 2024, driven by agriculture, fishing, and tourism. However, by December 30, the Central Bank acknowledged that these projections had fallen short, with growth remaining below 1%.
Despite the stagnant economy, São Tomé and Príncipe achieved the status of a medium-development country in December 2024. The Central Bank anticipates economic acceleration over the next two years, supported by a new agreement with the IMF under its expanded credit facility. Growth is projected at 3.1% in 2025 and nearly 5% in 2026, coinciding with the election year.
Governor Ramos also outlined other positive macroeconomic trends, including inflation reduction to 10.9% in 2024, with stabilization at 5% in the medium term. However, challenges persist, particularly in replenishing external reserves to meet the IMF-recommended level of three months of import coverage. A study revealed that only 17.2% of export-generated wealth passes through the national financial system, prompting the Central Bank to plan measures for restructuring the foreign exchange market.
Ending on a hopeful note, Ramos quoted American author Stephen Ambrose, saying, “The future is a source of hope.”