Angola: Fall in oil price may lead to review of Angola’s state budget

10 November 2008

Luanda, Angola, 10 Nov – The Angolan state budget for 2009 may have to be reviewed if there is a significant fall in oil prices, said the Angolan minister for Planning, Ana Dias Lourenço in Luanda.

Speaking to Angolan newspaper Jornal de Angola and news agency Angop on the sidelines of the presentation of the National Plan and the state budget project for 2009 in Parliament, the minister said that the average price set for drawing up the Budget for next year, of US$55 per barrel of oil, still gave some room to manoeuvre in its management.

“The measures carried out on na international level, mainly by teh Organisation of Petroleum Exporting Countries (OPEC), aim to stabilise the price of a barrel of oil and we believe that, as of 2009, that price will not fall much below the value at which it currently stands,” she said before noting that if that did not happen, the solution would be a review of the budget.

Lourenço said, however, that the Government was still focused on diversifying the economy. She added that the structure of the country’s Gross Domestic Product (GDP) had been fundamentally supported by growth of the oil sector, a trend which had been reduced.

According to the minister, the government was focusing on re-launching the economy and increasing domestic production, with a view to sustainable growth and development.

“The growth rate that we are forecasting for next year is of 11.8 percent and it is fundamentally driven by growth in the non-oil sector, which will grow by 15.9 percent. This growth is due to the growth rate in sectors such as construction, industry, trade and services,” she noted. (macauhub)