IMF increases forecast for Angolan economic growth in 2006 to 26 percent

20 April 2006

Washington, United States, 20 April – The International Monetary Fund (IMF) has increased its forecast for Angola’s gross domestic product (GDP) growth in 2006 by 11 percentage points to 26 percent, making it the country expected to post the biggest growth in the whole of Africa.

In its Spring report on the progress of the world economy, the World Economic Outlook, the IMF forecast increased growth for all Portuguese-speaking countries in r4elation to last year, pointing to GDP growth of 7.9 percent in Mozambique and 7 percent for Cape Verde.

The economy of Sao Tome and Principe is forecast to grow by 4.5 percent, 0.7 percentage points more than in 2005, and Guinea Bissau, 2.6 percent.

These two Portuguese-speaking African nations are the only two expected to maintain growth levels in 2007, according to the IMF, which expects Angola’s GDP to grow by 20.2 percent next year, and Mozambique’s to rise by 7 percent, while Cape Verde is expected to have GDP growth of 6.5 percent.

The Angolan government forecast for GDP growth in 2006 is of 28 percent.

Thanks to increased oil prices on the international market, sub-Saharan Africa is expected to have overall growth of 5.8 percent, which is the highest level over the last 30 years.

According to the IMF, “growth intensified” in the region and “it will be critical to sustain and increase recent economic performance to generate lasting impact on reducing poverty.”

Excluding Nigeria and South Africa, the region’s two largest economies, growth is forecast to reach 6.9 percent, according to figures published Wednesday. (macauhub)