Angolan economy to have annual growth of 35 percent – IMF

13 June 2007

Luanda, Angola, 13 June – Angola is the world’s fastest growing economy, according to Tuesday’s edition of Portuguese newspaper Jornal de Negócios, citing sources from the International Monetary Fund (IMF).

According to IMF projections, in 2007 Angola will see annual growth of 35 percent.

Since 2002, with the end of the civil war, Angola entered a period of “strong economic growth driven by a rise in revenue associated to oil, infrastructure reconstruction and re-homing of around 4 million internal refugees,” the IMF said.

Last year, according to official figures, the Angolan oil sector accounted for 49 percent of the country’s gross domestic product (GDP) and diamonds for 5 percent of GDP.

In the 2007 budget, the Angolan government has forecast growth of slightly over 30 percent, due not only to new oil blocs going into operation, but also to the revitalization of sectors such as agriculture, fishing and construction.

The real accumulated change in GDP between 2002 and 2006 was 89.6 percent.

The 2007 budget outlines a budget deficit of 3 percent of GDP and an inflation target of 4 percent.

In term of budgetary distribution, the social sector, with 28.1 percent of total expenditure, continues to be the area of highest spending, the defense sector accounts for 12.7 percent and public administration expenditure for 22.6 percent. (macauhub)