Angolan economy to see 6.4 pct growth in 2010, The Economist says

24 August 2009

Luanda, Angola, 24 Aug – The Angolan economy will return to growth in 2010 with the country’s gross domestic product (GDP) posting growth of 6.4 percent, according to the August report on the Angolan economy by the Economist Intelligence Unit (EIU).

The document said however that for this year the economy would see negative growth of 2.3 percent.

Cited by newspaper O País, the report added that the prospects for a recovery for 2010 were based on expenditure, recovery of goods and services exports, which are expected to see growth of 6.9 percent, as compared with a 7.1 percent drop this year, related to oil sector performance, and on imports.

The “continued expansion of the agricultural, manufacturing and construction sectors and the start of investment recovery,” are, according to the document, at the basis of estimated growth for 2010.

The rate of growth of agriculture will rise from an expected 5 percent this year to 9.5 percent and industry and services are due to invert their downward trend estimated for 2009 (-3.6 percent and -1.2 percent, respectively), with industry reaching growth of 5 percent and services of 9.5 percent.

The document also notes that relations may be re-established with the International Monetary Fund (IMF), highlighting a recent visit by an IMF delegation to Angola and pointing to the IMF adopting a more flexible attitude in relation to prerequisites for the concession of funding to the Angolan economy. (macauhub)