Democratic Republic of São Tomé and Príncipe

São Tomé and Príncipe (STP) remains fragile and is grappling with structural challenges typical of small island developing states. This structural fragility is further exacerbated by the country’s narrow export base, heavy dependence on fuel imports, and steady labor force losses from emigration. The macroeconomic conditions are gradually improving, supported by the Extended Credit Facility (ECF) arrangement approved in December 2024. A new government was appointed in January 2025, and it has reiterated its commitment to the Fund-supported program.