Central Bank says Angolan inflation falling sharply

16 December 2005

Luanda, Angola, 16 Dec – Angola’s inflation fell from 18.22 percent to 10 percent in the first half of the year against the same period of 2004, Angola’s central bank (BNA) has said in its latest report.

The results calculated up to June 2005, the BNA said, “show that the stabilization process of the economy has continued,” especially thanks to a drop in year-on-year inflation and monetary stability.

The BNA said in its report that these two factors were positively influenced by, “the containment of public spending and applying a restrictive monetary policy, based on open market operations and exchange.”

The Angolan government forecasts a 15 percent rate of inflation for this year, a projection which the BNA said would be fulfilled, together with the estimate for gross domestic product growth of 15.5 percent.

The oil sector is likely to be the driving force behind the economy’s growth, itself rising by 20 percent for the year thanks to increased oil prices on the international market and the start of production at new wells.

The government expects the non-oil sector to grow by 10 percent this year, driven by growth in the manufacturing and construction industries.

According to the BNA report the value of Angola’s currency, the kwanza, fell by 4.14 percent between March and June, which, “fell within the parameters set in the monetary program.”

The central bank said it also expected this year, “the strengthening of the overall situation of the balance of payments,” of the Angolan state, due to increased international currency reserves of some US$654 million. (macauhub)