Economic Growth Of Angola
Angola’s real GDP growth rate registered a slight increase from 3.4% in 2010 to an estimated 3.5% in 2011. This growth was driven mainly by oil prices and a strong real growth in the non-oil sector of 7.7%, which helped to compensate for the effects of production problems registered in the oil sector. In 2012, the growth rate accelerated to 8.2%, and is forecast to be 7.1% this year.
Angola continues to implement the IMF Stand-By Arrangement (SBA) programme, which entails strict budgetary and monetary discipline and reforms to improve the exchange rate system, public financial management, maintaining a solid banking system and budgetary transparency.
In spite of the considerable progress registered in improving social conditions since 2002, the country still faces enormous challenges with respect to poverty, unemployment and increasing human development. The Government continues to channel over 30% of its budget towards social expenditure. The increase from 1.6% to 33.3% last year is double the amount to be spent on security, defence and public order.
Angola is the second largest oil producer in Africa after Nigeria, producing over 1.9 million barrels per day (bpd). Following the shocks stemming from the global economic slowdown and by the sharp fall in oil prices, which caused budgetary imbalances in the balance of payments, the country has gradually begun to recover.
Such growth shall be driven by the entry into operation of the Natural Liquefied Gas (GNL) project, budgeted at 9 000 million USD, which will allow for an increase in oil production of over 2 million barrels per day. Inflationary pressures remained high at 14.5% in 2010, and 13.5% in 2011, mainly as a result of the strong growth in domestic demand. However, pressure fell to 10, 0% in 2012 and should fall to 9.4% in 2013.
The country has implemented the IMF Stand-By Agreement (SBA) (1.4 000 million USD in liquidity), which was signed in November 2009. The SBA aims to improve budgetary and monetary discipline, reform the exchange rate system, the public financial management, and ensure a solid banking system and budgetary transparency.
In 2011, Angola adopted measures to review the budget system by creating a debt management unit and to monitor and control flows from the oil sector towards the budget. The Angolan Central Bank (BNA) temporarily shifted from an exchange rate rationing system to an auction system. An overall strategy for developing the private sector was also drawn up. Contraction in capital spending and better control of expenditure in 2011 enabled the authorities to repay domestic arrears to the tune of 7.5 000 million USD, which had accrued since 2009.
In spite of the substantial progress achieved in improving social conditions since 2002, the country still faces enormous challenges with respect to poverty, unemployment and increasing human development.