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Sao Tome & Principe Sao Tome & Principe

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Sao Tome & Principe

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EconomicPoliticalStructural

Sao Tome & Principe – Quick View
ECR score11.83 (Mar 2011)
ECR rank174 (Mar 2011)
Economic
GDP 2009USD 0.204 billion
GNI per capita PPP 2009USD 1,850
FDI inflow 2009USD 36 million
Inflation 201012.28%
Central bank assets 2009USD 128.98 million
Unemployment rate 200826.8%
Government deficit 2009USD 0.007 million
Tax revenue 2009USD 0.030 million
Political
Government typeRepublic
Recent political crisisNA
Economic freedom score150th
Freedom of information scoreNA
Corruption perception index101st
Structural
Birth rate 200932 (per '000 people)
Population balance0-14 years – 40.70%
Population balance15-59 years – 53.95%
Population balanceAbove 60 years – 5.35%
Life expectancyMale – 63.6 years
Life expectancyFemale – 67.4 years
Mortality rate7 (per '000 people)
Literacy rate 200888%
Internet access15.2%

[Top] Economic Overview

Gross domestic product (GDP)

 

Gross domestic product (GDP), at constant price of Serbian economy stood at RSD 976.38 billion for the first three quarters of 2010. The state registered a growth of 2.7% as against third quarter of 2009.

 

GDP growth rate

 

Serbia GDP and GDP growth rate

(Source: NBS)

 

Gross national income (GNI) at current market prices

 

In 2008, Gross National Income (GNI) of the country was RSD 2,648,026.5 million, as compared to RSD 2,254,090.8 million in 2007.

 

Serbia GNI at current prices

(Source: National Statistics)

 

GNI per capita

 

GDP per capita of Serbia was RSD 384,520 in 2009, which registered a growth of 3.81% over the previous year.

 

Serbia GNI per capita, PPP

(Source: UNDP)

 

Income tax rate

 

In Serbia, the highest tax rate on individual income is 15%. Furthermore, salaries of individuals are taxed at 12%, and other income is taxed up to 20%.

 

(Source: heritage.org)

 

Corporate tax

 

The corporate profit tax rate is 10% in Serbia.

 

Tax contribution

Total tax rate (% profit)

Corporate income tax

11.6

Social security tax

20.2

Property transfer tax

1.5

Property tax

0.7

Value added tax (VAT)

18.0

 

(Source: DoingBusiness.org)

 

Inflation rate

 

Serbia Inflation rate

(Source: NBS)

 

Inflation rate of the country continuously declined till July 2010, after which it started to rise. In December 2010, the country’s inflation rate was registered at 8.8%.

 

FDI inflow

 

Foreign direct investment (FDI) in Serbia was EUR 1,002.29 million in November 2010. The Netherlands was the major investor to the total inflow of FDI with EUR 221.31 million.

 

Serbia’s FDI in other countries, amounted to EUR 266.43 million in November 2010. The major investment was made in Netherlands, with an investment of EUR 23.54 million.

 

Portfolio investment inflow in Serbia stood at EUR 44.8 million as of September 2010, growing by 7.2% over the corresponding period of previous year.

 

(Source: NBS,)

 

Banking sector assets

 

Total assets of the National Bank of Serbia stood at RSD 1,188,794 million at the end of 2010, growing 4.64% from the previous year.

Total Assets (RSD million)

 

2010

2009

Total Assets

1,188,794

1,136,014

Monetary Gold

47,166

31,078

Special Drawing Rights

234

1,286

Cash Holding and Foreign Currency

1,007,769

984,243

Other Foreign Assets

7,909

6,235

Credit to Government

1,319

11,300

Credit to banks

768

386

Credit to Public Enterprise

0

0

Credit to non-bank Financial Organisation

5,519

4,879

Credit to other sectors

3,375

2,463

IMF quota

57,103

48,926

Other Assets

57,632

45,218

 

(Source: NBS)

[Top] Financial Indicators & Government Financial

Proportion of population of working age

 

Of the total population, 84.59% of people are of working age, or above 15 years of age.

 

Labour force

 

Serbia had a total labour force of 2.94 million in October 2010, of which 2.38 million people were employed, accounting for 80.78% of the total labour force. Furthermore, of the total labour force, 0.56 million people were unemployed, or 19.22%. Females and males accounted for 43.94% and 56.81% of the labour force respectively.

 

The unemployment rate of Serbia was recorded at 19.2% in October 2010.

 

(Source: National Statistics)

 

Labour force participation rate

 

The labour force participation rate in Serbia was 58.85% in October 2010.

 

(Source: National Statistics)

 

Employment in agriculture

 

The total number of peoplel employed in agriculture, forestry and fishing was 0.52 million, which accounts for 21.9% of the employed population.

 

(Source: National Statistics)

 

Level of unionisation

 

Confederation of Autonomous Trade Unions of Serbia is one of the oldest trade unions of Serbia. The confederation is comprised of 29 professional federations and 106 local federations, and it has 850,000 members over all sectors in the country.

 

(Source: sindikat.rs)

 

Minimum wage

 

The average salary in Serbia is 310 Euros per month.

 

(Source: sindikat.rs)

[Top] Labour Force and Employment Overview

In 2008, the labour force participation rate in Sao Tome and Principe was 41.2%. Labour force participation rate among women was 38.0% and 44.5% among men.

(Source: National Statistics)

Unemployment rate

As of 2008, unemployment rate in Sao Tome and Principe is 26.8%. The unemployment rate was 25.9 % among men and 27.9% among women.

(Source: National Statistics)

Sao Tome & Principe Unemployment rate

(Source: National Statistics)

Minimum wage

Monthly minimum wage in the country amounts to STD 715,000 approximately equal to USD 45

(Source: africaneconomicoutlook.org)

Level of unionisation

In Sao Tome and Principe, there are two trade unions namely:

  • Organizaçâo Nacional dos Trabalhadores de São Tomé E Principe -Central Sindical (ONTSTP-CS)
  •  União Geral de Trabalhadores de São Tomé e Príncipe (UGT-STP)

(Source: icftu.org)

[Top] Political Stability

The Government in Sao Tome and Principe is a Semi-Presidential democratic Republic. The power in the country is shared at three different levels – Legislative, Executive, and the Judiciary.Executive powers are exercised by the President and Prime Minister. Legislative powers are exercised by the Government and the National Assembly. The judicial powers are free from legislative and executive powers and are executed by the courts of law.

National Assembly is comprised of 55 members elected for a five year term.

(Source: fco.gov.uk)

Major political parties in the country are:

  • ADI - Independent Democratic Action
  • AP - Popular Alliance
  • AVP - Voice of the Population Association
  •  CODO - Democratic Coalition of the Opposition
  •  FDC - Christian Democratic Front
  •  GE - Generation Hope
  • MDFM - Force for Change Democratic Movement

 (Source:  africanelections.tripod)

Business and Economic Freedom

Sao Tome and Principe scores 49.5 on index of economic freedom making it 150th freest economy in 2011.

Sao Tome & Principe Economic Freedom Indices

 

(Source: Heritage.org)

Corruption perception

Sao Tome and Principe ranks at 101st position on the Corruption Perceptions Index (CPI) 2010. CPI measures the perceived level of public-sector corruption in 180 countries and territories around the world.

(Source: transparency.org)

Freedom of information

The constitution of Sao Tome and Principe guarantees freedom of expression to all citizens. The government controls a press agency, radio and television stations.

Tela Non Diario de Sao Tome e Principe is a government owned newspaper and Televisao Saotomense (TVS) is a national T.V broadcaster.

 (Source:BBC News)

Judicial System

The Supreme Court forms the highest entity of the judicial system in the country is free from legislative and executive powers in the country.

(Source: factrover.com)

[Top] Demographic Overview

Government stability

 

Serbia split from the union of Serbia and Montenegro in 2006. The country had a period of political instability prior to 2009.

 

Serbia has a republican system of government. The government holds the executive powers, and is elected by the deputies of the national assembly. The executive powers are exercised by the prime minister and the cabinet. The legislative power is exercised through the national assembly.

 

The president is the head of the state and represents the country internationally. He has the power to approve laws and to propose candidates for office to the parliament of Serbia. Furthermore, he is also in command of the military, and has the authority to appoint officers of the army.

 

The national assembly is the supreme representative body, and is comprised of 250 deputies, who are directly elected for a period of four years.

 

Major political parties in Serbia include:

 

·         Demokratska Stranka    

·         G17 Plus

·         Srpska Radikalna Stranka

·         Socijaldemokratska Partija Srbije (SDP)  

 

(Source: Serbia.travel, President’s Office, Government of Serbia, Government of Serbia, Parties and Election.de)

 

Regulatory environment

 

Serbia’s economic freedom score is 58 which make its economy 101st freest in the 2011 Index of Economic Freedom. It was ranked 38th out of the 43 countries in the European region.

 

(Source:Heritage.org)

 

Corruption perception

 

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Serbia, with a score of 3.5, was ranked 78th in the 2010 Corruption Perceptions Index.

 

(Source:transparency.org)

 

Freedom of information

 

Press and media in Serbia have moderate levels of restriction. The Republic of Serbia is ranked 85th on the world Press Freedom Index 2010, with a score of 23. The country’s ranking has slipped from 62nd in 2009.

 

(Source: rsf.org)

 

Judicial system

 

The judicial system in Serbia operates independently.  Judicial power is exercised through general jurisdiction courts and specialised courts.

 

General Jurisdiction Courts:

 

·         Municipal and district courts

·         Appellate courts

·         Supreme Court


Specialised courts:

·         High commercial court

·         Commercial court

·         Magistrate’s courts

·         The high magistrate’s court

·         The administrative court

 

The Supreme Court is the highest court of justice in the country.

(Source: Ministry of Justice)

[Top] Soft Infrastructure

Education/literacy rate

Literacy rate for citzens between 15 and 24 years is estimated at 99% in 2008.

(Source: World Bank)

Education resources

In 2006-07, Serbia had 3,551 primary education schools and 472 schools for secondary education. In 2006, the country had 238,710 students in higher and university education, of which 131,988 were females. There were 6,331 postgraduate students in 2005, of which 3,374 were females.

The public expenditure on education is about 4.5% of the GDP.

(Source: National Statistics, UNDP)

Healthcare resources

The healthcare system in Serbia follows mandatory medical insurance. Local companies in the country provide the private health insurance in the country.

The country’s public expenditure on health makes up approximately 6.1% of the GDP.

(Source: SIEPA, UNDP)

[Top] Hard Infrastructure

As of October 2010, the total population of Serbia was 7.46 million. Furthermore, the country’s male population was 3.63 million, whereas female population was 3.83 million. In October 2010, male and females population accounted for 48.68% and 51.32% of total population respectively. The country’s gender ratio in 2009 was 97.9 males per 100 females.

 

About 64.5% of the population is between 15 and 64 years, followed by 20.07% aged above 65 years and the remaining 15.4% population in the between  0 and 14 years.

 

Population by age (years)

Number of people

0-14

1,150,733

15-64

4,818,874

65+

1,499,012

 

 

(Source: National Statistics, UN)

 

Birth and death rate

 

The birth rate was registered at 9.6 births per 1,000 persons in 2009, whereas the fertility rate was 1.4 births per woman. The mortality rate was recorded at 14.2 deaths per 1,000 persons. While, the Infant mortality rate stood at 7 infant deaths per 1,000 births. The country registered a total of 104,000 deaths in 2009.

 

(Source: National Statistics)

 

Life expectancy

 

In 2009, median age of the population was 41.4 years. The average life expectancy of the male population was 71.1 years and 76.4 years for females.

 

(Source: National Statistics)

 

Migration and urbanisation

 

In mid-2010, the international migrant stock was recorded at 525,400 people or 5.3% of the total population. Major part of population is urbanised as 4.28 million people live in urban area, accounting for 57.36% of the total population.

 

(Source: UN data, National Statistics)

 

Ethnic environment

 

Serbia is a multi-ethnic country, where the majority of the population is made up of Serbians (82.86%), Hungarians (3.91%), Bosniaks (1.81%), Roma (1.44%) and Yugoslavs (1.08%). Other ethnic groups include Croatians, Albanians, Romanians and Germans.

 

(Source: Serbia.travel)

 

Human development index (HDI)

 

Serbia stood at 60th on the HDI 2010, conducted by the United Nations. HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income).

 

(Source: UNDP)

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