São Tomé & Príncipe profile

Demography and Health

São Tomé and Príncipe is a small island nation with a population of about 235,536 in 2024, placing it among the smaller populations globally (rank around 181). The country exhibits a relatively high crude birth rate of 28.2 per 1,000 people (2023) and a crude death rate of 5.57 per 1,000 people (2023), suggesting ongoing natural population growth but with a slower pace than many other developing economies. Life expectancy at birth is 69.7 years (2023), and mortality under age five stands at 13.9 per 1,000 live births (2023), indicating room for improvements in maternal and child health, nutrition, and primary care. Net migration was negative in 2024, at -604 people, implying that more residents leave than enter and signaling potential constraints on the domestic labor force and human-capital retention. Health financing shows a modest footprint: current health expenditure is 7.46% of GDP (2022), and domestically financed government health expenditure per capita, purchasing-power-parity terms, is about 168 international US dollars (2022). These figures point to a health system that is under pressure to stretch limited resources across a country with a growing, young population. The prevalence of undernourishment remains a concern, affecting 16.4% of residents (2022), underscoring the need for nutrition-sensitive policies and social protection measures. Internet penetration is relatively moderate, with 61.5% of the population online in 2023, which can support health information dissemination and telemedicine but also highlights a digital divide risk. Suicide mortality is very low at 0.86 per 100,000 (2021), offering a positive signal about mental health outcomes, though underreporting and stigma can influence such figures. Overall, demography and health in São Tomé and Príncipe reflect a youthful but migrating population, constrained health financing, and nutrition challenges that require targeted public-health investment and efficiency improvements in service delivery.

Economy

The economy of São Tomé and Príncipe shows a modest income level with a GDP per capita of about 3,245 current US dollars in 2024 and a GDP per capita at PPP of roughly 6,230 international US dollars, indicating stronger living standards when adjusted for purchasing power but still well within lower-middle-income range. Inflation remains elevated at 14.4% in 2024, signaling price pressures that affect households’ purchasing power and the cost of imports, a common challenge for small, open economies with limited domestic markets. The country produces some high-technology exports, valued at 70,979 current US dollars in 2023, which demonstrates a diversification impulse toward knowledge-intensive goods, albeit at a very small scale relative to the overall economy. External accounts reveal vulnerability to external shocks: the current account balance stood at a deficit of 14.7% of GDP in 2022, indicating that imports and other outflows exceed exports and that financing from abroad is essential for sustaining demand. Foreign direct investment net inflows amounted to 2.72% of GDP in 2023, signaling a modest but meaningful stream of private capital that can support infrastructure, technology transfer, and productivity upgrades if policy and governance constraints are mitigated. Taken together, the macro profile points to a small, open economy with growth potential rooted in tourism, services, and niche export products, but with inflationary pressures, external financing needs, and a tight investment climate that require careful policy design and macroeconomic management.

Trade and Investment

Trade and investment dynamics in São Tomé and Príncipe reflect a small, open economy integrating into regional and global markets. Foreign direct investment net inflows reach 2.72% of GDP in 2023, signaling a cautious but positive investor interest that could support capital formation, technology transfer, and employment in targeted sectors. The current account balance remained negative at -14.7% of GDP in 2022, underscoring a reliance on external financing to cover imports and possibly service debt, which can complicate macro stability if global financing conditions tighten. The export structure includes high-technology exports valued at 70,979 current US dollars in 2023, indicating some capability to participate in advanced production, though scale is limited. This combination suggests that policy efforts to improve export competitiveness, diversify product lines, and streamline investment processes could help reduce the external deficit, attract larger, steadier capital inflows, and bolster sustainable growth. However, continued emphasis on improving fiscal discipline, regulatory reliability, and infrastructure will be essential to convert modest private investment into durable gains.

Governance and Institutions

The governance landscape in São Tomé and Príncipe is characterized by a mix of stability and notable institutional weaknesses. Political stability and absence of violence/terrorism score 0.441 in 2023, with a global rank around 74, indicating a degree of political continuity and risk management relative to peers. However, regulatory quality is markedly negative at -0.94 (rank 166), themeing weak regulatory frameworks and inconsistent policy implementation. Rule of law is also weak at -0.695 (rank 148), suggesting challenges in contract enforcement, judiciary effectiveness, and property rights. Government effectiveness is particularly low at -0.902 (rank 162), signaling constrained public-service delivery, policy execution, and capacity in state institutions. In contrast, control of corruption shows a more favorable stance at 0.36 (rank 66), indicating some progress in anti-corruption efforts, but not enough to offset broader governance deficiencies. Overall, the governance profile points to a stable political environment, yet substantial institutional and regulatory bottlenecks that can deter private investment, hinder business planning, and limit the efficiency of public services. Strengthening regulatory quality, judiciary independence, and public administrative capacity—while maintaining political stability—would be central to creating a more conducive environment for sustainable development and private-sector growth in the medium term.

Infrastructure and Technology

São Tomé and Príncipe shows a developing but uneven digital and energy infrastructure. Internet usage stands at 61.5% of the population in 2023, indicating a solid base for digital services and e-government, but also highlighting a substantial portion of citizens without online access who could be left behind without targeted inclusion policies. Renewable energy accounts for 42.5% of total final energy consumption in 2022, signaling meaningful progress toward cleaner, lower-emission energy, while leaving room to accelerate the transition, reduce import reliance, and enhance energy security. Per capita greenhouse gas emissions exclude LULUCF at 1.31 t CO2e in 2023, reflecting the country’s small energy system and population size, but underscoring the ongoing need to scale renewables and energy efficiency to further decarbonize. The water-stress indicator—level of freshwater withdrawal as a proportion of available resources at 1.88 in 2021—suggests the country faces pressures on water resources, with implications for agriculture, industry, and climate resilience. Health and social spending metrics—current health expenditure at 7.46% of GDP (2022) and health expenditure per capita, PPP, at 168 international US$ (2022)—indicate limited capacity for expanding services and technology-enabled health innovations. Taken together, the infrastructure and technology profile reveals a nation making strides in digital access and renewable energy, yet still contending with water security challenges, financing limits, and the need for further investment in ICT infrastructure and service delivery efficiency to unlock broader economic progress.

Environment and Sustainability

Environmental attributes of São Tomé and Príncipe reveal a balance of green potential and vulnerability. Renewable energy use is a notable strength, with 42.5% of total final energy consumption derived from renewables in 2022, contributing to lower emissions intensity and a pathway toward sustainable growth. Yet the population faces a significant malnutrition challenge, with 16.4% of people undernourished in 2022, highlighting ongoing food-security concerns and the necessity for resilient agricultural development and nutrition programs. Per-capita greenhouse gas emissions are relatively low at 1.31 t CO2e (2023), reflecting a small industrial footprint and limited energy consumption, but this advantage could be at risk if energy demand grows without complementary efficiency and decarbonization efforts. Water stress indicators show a level of 1.88 in 2021, signaling vulnerability to drought and the importance of integrated water-resource management, climate adaptation, and investment in water infrastructure. In sum, the environmental outlook combines meaningful renewable-energy progress with notable challenges in nutrition, water security, and climate resilience. Directed investment in sustainable agriculture, water-resource planning, and climate adaptation will be crucial to preserve ecological integrity and support long-term development.