February 1, 2023

IMF says Angola’s economic outlook positive with oil production projected to grow by 2.1 percent in 2022 and non-oil growth momentum up

Angola’s Minister of Mineral resources, oil and gas, Diamantino Azevedo
Angola’s Minister of Mineral resources, oil and gas, Diamantino Azevedo

The International Monetary Fund (IMF) on Friday gave a positive outlook of Angola’s economy, asserting that oil and non-oil growth has continued in 2022 while “implementation of the prudent budget appears to remain on track, helped by oil revenues and spending discipline.”

“Bolstered by prudent policies and high oil prices, the Angolan economy is expected to continue recovering this year, while at the same time reducing vulnerabilities,” the IMF said in a statement to Today News Africa in Washington, noting, however, that its 3.0 percent overall growth for the Angolan economy in 2022 may be slightly impacted by the war in Ukraine and slower-than-expected non-oil growth in 2022Q1. 

“The downside risks to this projection have recently risen modestly, taking into account the impact of the war in Ukraine and somewhat slower-than-expected non-oil growth in 2022Q1,” IMF told Today News Africa. “Following sharp declines in 2020 and 2021, oil production is projected to grow by 2.1 percent this year, as some new production comes on line and maintenance resumes in existing oil-fields after Covid-related disruptions.”

It added that “non-oil growth momentum continues in 2022, although there are downside risks to the pace of recovery due in part to the war Ukraine. Lower fertilizer supply is projected to hold back the otherwise dynamic agriculture sector, and diamond production may also be disrupted.”

“Implementation of the prudent budget appears to remain on track, helped by oil revenues and spending discipline. International reserve coverage remains adequate. Strong oil export receipts have boosted the current account surplus and strengthened the currency under the flexible exchange rate regime. Combined with sound policies, the stronger currency has helped slow inflation and reduce the debt to GDP ratio significantly,” IMF said.


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