色库TV

The CDP takes note of the fact that Sao Tome and Principe has, with external support, been able to effectively mitigate the socio-economic impacts of the pandemic. The contraction of the tourism sector during the pandemic, the main source of income for the economy, was compensated by higher public spending, including in social areas. As such the economy grew faster than in pre-pandemic years. However, the CDP acknowledges that the country continues to be highly dependent on external support. Public spending was supported by a notable level of grants and loans. It is therefore difficult to anticipate the stability of Sao Tome and Principe’s developmental path. Public debt, as measured by the public debt-to-GDP ratio, remains sustainable, and accumulated arrears with bilateral partners is a main challenge. Overall, the country continues to show improvement in all LDC criteria indicators, and its graduation is not at risk. Nevertheless, the CDP recommends to continue to monitor the situation, especially with regard to changes in external support, as the economy and the social context are still fragile. The CDP also strongly urges the Government of Sao Tome and Principe to finalize and present their smooth transition strategy, which will be an opportunity to respond the country’s vulnerabilities, in line with their National Development Plan.