Ethiopia

@Sao Tome And Principe:Economy

Overview: This small poor island economy has remained dependent on
cocoa since independence 20 years ago. Since then, however, cocoa
production has gradually declined because of drought and
mismanagement, so that by 1987 annual output had fallen from 10,000
tons to 3,900 tons. As a result, a shortage of cocoa for export has
created a serious balance-of-payments problem. Production of less
important crops, such as coffee, copra, and palm kernels, has also
declined. The value of imports generally exceeds that of exports by a
ratio of 4:1 or more. The emphasis on cocoa production at the expense
of other food crops has meant that Sao Tome has to import 90% of food
needs. It also has to import all fuels and most manufactured goods.
Over the years, Sao Tome has been unable to service its external debt
and has had to depend on concessional aid and debt rescheduling.
Considerable potential exists for development of a tourist industry,
and the government has taken steps to expand facilities in recent
years. The government also has attempted to reduce price controls and
subsidies and to encourage market-based mechanisms, e. g., to
facilitate the distribution of imported food. Annual GDP growth is
estimated in the 3%-4% range for 1994-96.

National product: GDP - purchasing power parity - $133 million (1993
est.)

National product real growth rate: NA%

National product per capita: $1,000 (1993 est.)

Inflation rate (consumer prices): 27% (1992 est.)

Unemployment rate: NA%

Budget:
revenues: $10.2 million
expenditures: $36.8 million, including capital expenditures of $22.5
million (1989 est.)

Exports: $5.5 million (f.o.b., 1993 est.)
commodities: cocoa 78%, copra, coffee, palm oil (1992)
partners: Netherlands, Germany, China, Portugal

Imports: $31.5 million (f.o.b., 1993 est.)
commodities: machinery and electrical equipment 44%, food products
18%, petroleum 11% (1992)
partners: Portugal, Japan, Spain, France, Angola

External debt: $237 million (1993)

Industrial production: growth rate 1% (1991); accounts for 7% of GDP

Electricity:
capacity: 5,000 kW
production: 17 million kWh
consumption per capita: 105 kWh (1993)

Industries: light construction, shirts, soap, beer, fisheries, shrimp
processing

Agriculture: accounts for 25% of GDP; dominant sector of economy,
primary source of exports; cash crops - cocoa, coconu