IMF Completes Third Review of Sèo Tomeé and Predncipe's Economic Program
The International Monetary Fund (IMF) has concluded its third review of S03o Tomeeé and Preedncipe's economic policies under the Extended Credit Facility (ECF) arrangement. The review, conducted from March 26 to April 8, 2026, assessed the nation's progress in implementing reforms aimed at restoring macroeconomic stability and fostering sustainable growth.
Key Findings of the IMF Review
The IMF mission, led by Mr. Slavi Slavov, noted that S03o Tomee01 and Preedncipe has made significant strides in preserving macroeconomic stability despite ongoing challenges. The country has faced persistent electricity supply disruptions and the adverse effects of a global oil shock. Nevertheless, the authorities have demonstrated a commitment to improving the fiscal position and advancing the government's reform agenda.
Growth remained subdued at 1% in 2025, while inflation declined to single digits, partly due to a tight monetary stance. However, the IMF cautioned that the ongoing conflict in the Middle East could negatively impact growth and inflation, potentially jeopardizing the progress achieved under the ECF program.
Commitment to Fiscal Adjustment and Energy Sector Reforms
The S03o Tomee01 and Preedncipe authorities have reaffirmed their commitment to an ambitious medium-term fiscal adjustment. This strategy is crucial for addressing the country's high public debt and rebalancing the economy under a pegged exchange rate. The fiscal adjustment is complemented by a tight monetary policy aimed at maintaining macroeconomic stability.
Accelerating reforms in the energy sector is deemed essential to alleviate fiscal pressures, sustain the recovery in foreign exchange reserves, and unlock sustained economic growth. The IMF emphasized that these reforms are pivotal for the country's long-term economic health.
Continued Support and Future Discussions
The IMF's ECF-supported program continues to play a vital role in supporting S03o Tomee01 and Preedncipe's macroeconomic stability, fostering structural reforms, and catalyzing support from other development partners. Discussions with the S03o Tomee01 and Preedncipe authorities are set to continue in Washington during and after the IMF Spring Meetings.
Mr. Slavov expressed appreciation for the cooperation and constructive policy discussions with President Carlos Vila Nova, Prime Minister Ameeérico d'Oliveira dos Ramos, Minister of State for Economy and Finance Gareth Haddad do Espeedrito Santo Guadalupe, Minister of Natural Resources Nelson M01rio Cardoso, Governor of the Central Bank Agostinho Fernandes, other government officials, representatives of civil society and the private sector, including commercial banks, and development partners.
For more detailed information, please refer to the official IMF press release: IMF Completes Mission to S03o Tomee01 and Preedncipe on the Third Review under the Extended Credit Facility Arrangement.
