Updated: March 7, 2021
A staff team from the International Monetary Fund (IMF), led by Geremia Palomba, held a virtual mission during November 13-23, 2020 to conduct the second review of São Tomé and Príncipe’s economic program supported by the IMF Extended Credit Facility (ECF) arrangement1.
In a statement, Mr. Palomba said the COVID-19 pandemic is having a severe impact on São Tomé and Príncipe’s economy with real GDP expected to contract by about 6 percent in 2020 due to weak external demand and pandemic-containment measures.
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“The IMF team and the authorities of São Tomé and Príncipe have reached a staff level agreement on measures for the completion of the second review under the ECF arrangement subject to approval by the IMF Executive Board. The IMF Executive Board is tentatively scheduled to consider this second ECF review in January 2021.
“The COVID-19 pandemic is having a severe impact on São Tomé and Príncipe’s economy.
“Real GDP is expected to contract by about 6 percent in 2020 due to weak external demand and pandemic-containment measures.
“As tourism and domestic activities gradually recover, the economy is projected to grow by about 2-3 percent in 2021, before approaching a long- term growth of about 4 percent. However, there are significant risks and uncertainties to this outlook due to the pandemic.”
“The ECF review discussions focused on measures to meet the country’s immediate health, social and economic needs and support the upcoming recovery,” Palomba said.