IMF classifies Angola’s recent macroeconomic performance as “good”

25 June 2007

Washington, United States, 25 June – The International Monetary Fund (IMF) has classified the recent macroeconomic performance of the Angolan economy as good, according to the preliminary conclusions of a visit by an IMF mission to Luanda between May 24 and June 6.

Growth of incomes has been boosted since 2001, both in the oil and diamond sectors and in non-mining sectors (particularly manufacturing, processing, construction and services), the report said.

the IMF noted that economic growth reached 18.6 percent in 2006.

Angola has recently made notable progress in reducing inflation, which at the end of 2006 was 12 percent, below the 19 percent posted in 2005.

However, the inflation rate remained above the 10 percent government target.

In the short and medium terms economic prospects remain positive. “Indicators suggest that growth will remain strong (…) in 2007 the Gross Domestic Product (GDP) is expected to grow 31 percent, reflecting revenues from new oil fields, consolidated growth in agriculture, manufacturing, construction and the power sector,” the IMF said.

However, Angola faces the volatility of the market for its oil exports, wit the IMF noting that the fluctuation of oil prices will have a decisive effect on the balance of payments.

In conclusion the IMF identified three challenges for which the Angolan authorities will have to find a solution: management of oil-generated wealth, improvement of the economy’s competitiveness and the development of the economy based on non-oil sectors. (macauhub)