Angola’s economic growth expected to be ‘moderately positive’ in 2022 as non-oil sectors continue to recover and oil production stabilises, IMF says

Angola’s economic growth is expected to be “moderately positive” in 2022 as non-oil sectors continue to recover and oil production stabilizes, the International Monetary Fund (IMF) said on Thursday, saying the recovery that began in 2021 is expected to pick up. to chase. This year.

The multilateral lender said high oil prices and strong non-oil revenue would have generated a substantial overall fiscal surplus in 2021. High oil prices have also led to a large current account surplus, a stronger exchange rate and adequate international reserves.

IMF Managing Director Kristalina Georgieva

Angola’s non-oil sector began to grow last year as oil production fell. Non-oil GDP recorded an average growth of 5.2% in the first three quarters of 2021.

“Inflation, driven by high global food prices, has been around 27% year-on-year since October. The central bank maintained tight monetary conditions in response, and the government took steps to facilitate food imports. Inflation is expected to gradually decline over the course of 2022, in line with the expected decline in global food prices,” an IMF spokesperson said. Today News Africa in Washington DC. The spokesperson added that with debt levels still high, fiscal policy will remain tight.

“The authorities’ responsible fiscal policies as well as past debt reprofiling have helped preserve debt sustainability and enabled the allocation of resources to address the economic and health crises. Going forward, key debt indicators, such as the debt-to-GDP ratio, will improve rapidly, although vulnerabilities will remain,” the spokesperson said.

“The IMF supported the authorities’ economic reforms through a three-year EFF extension arrangement; this program concluded successfully – despite many challenges, including COVID-related shocks – with the completion of the sixth and final review on December 22, 2021. The authorities have publicly stated that they are not currently considering request a follow-up program from the Fund.

“Key reforms ahead focus on maintaining the fiscal stance that reduces debt vulnerabilities and diversifying the Angolan economy away from oil dependence by pursuing far-reaching reforms to strengthen governance, improve business environment and promote private investment. At the same time, the authorities are strengthening their monetary policy framework to deal with inflationary pressures,” the spokesperson said.

Simon Atebanbsp

Simon Ateba is chief White House correspondent for Today News Africa. Simon covers President Joe Biden, Vice President Kamala Harris, the US government, the United Nations, the International Monetary Fund, the World Bank, and other financial and international institutions in Washington DC and New York.

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