Democratic Republic of São Tomé and Princípe

Progress has been made in fiscal consolidation and structural reform in the past year. Nevertheless, the country still faces a high debt level, has a low ratio of tax revenue to GDP, and relies heavily on external support. While the economy grew steadily at about 4 percent in the past three years, accelerating growth through consolidating macroeconomic stability and continued structural reforms will be essential for poverty reduction in a country with a young population.