Angola: World Bank confirms slowdown of Angolan economy in 2009

11 June 2008

Cape Town, South Africa, 11 June – The World Bank Tuesday confirmed the forecast of a slowdown of the Angolan economy, which in 2009 was expected to grow by 6.7 percent, as compared to 25.4 percent this year.

In its annual report on Global Development, published in Cape Town, the World Bank projected that the Angolan economy would return to two digit growth in 2010, when it would grow 10.2 percent.

The World Bank’s projections increase the forecasts published in May by the Organisation for Economic Cooperation and Development (OECD), in its report on “Economic prospects for Africa 2008.”

At the time the OECD projected a slowdown in the growth of the Angolan economy to 11.5 percent this year and 5.1 percent in 2009 “as growth of the oil sector slows, to 11 percent and 2 percent, assuming that the country fulfils the quota set by the Organisation of the Petroleum Exporting Countries (OPEC) of 1.9 million barrels per day.”

“This strong slowdown in the rate of growth of the Angolan economy does not surprise me. It is very clear that this type of growth above 20 percent is not sustainable in the long term. This growth was only possible thanks to the discovery and exploration of new oil wells,” Hans Timmer, co-author of the World Bank report told Portuguese news agency Lusa.

In his opinion, the strong acceleration of Angolan growth in recent years, “reflects almost entirely the performance of oil production.”

Timmer also calculated that the, “potential growth of Angola in the long term,” would be of “six or seven percent,” and more related to the performance of “other sectors” that oil revenues would help to develop. (macauhub)