Construction, diamonds and electricity are Angola’s most dynamic sectors in 2006

8 March 2007

Lisbon, Portugal, 8 March – The construction, diamond, manufacturing industry and electricity sectors were the most dynamic of the Angolan economy in 2006, with growth rates higher than the oil sector, which is the country’s economic mainstay, Portuguese bank BPI has said.

“Growth in 2006 continued to mainly be sustained by the oil sector, but there was notable progress in the non-oil sector, despite a fall in production of agriculture and silviculture,” said BPI’s department of Economic and financial studies, in a report published Wednesday.

Portuguese bank BPI controls Banco Fomento, which is one of Angola’s main banks.

While growth of the oil sector, according to the latest estimates, slowed from 26 percent to 21.2 percent, growth of the non-oil sector rose from 14.1 percent to 17.2 percent in 2006.

BPI expects Angolan inflation to see “a downward trajectory over the next few months” after a rise at the end of last year.

The government target of 10 percent was not met in 2006, but is possible this year, “provided exchange rate stability is maintained.”

Last year, the Angolan economy posted growth of 19.5 percent, a slight slowdown as compared to 2005, and this year is expected to grow by 31.2 percent, according to the Angolan Finance Ministry.

The World Bank has projected growth of 30.2 percent, thanks to 40.9 percent growth of the oil sector, which is expected to produce 736.9 million barrels, or 48 percent more than last year. (macauhub)