Angolan economy expected to post growth of close to 10 pct this year

30 March 2010

Lisbon, Portugal, 30 March – The Angolan economy is expected to return to growth of close to 10 percent this year, with the recovery of the oil sector and expected investments, according to estimates from Espírito Santo Research published Monday in Lisbon.

“In 2010, Angola’s economic activity should see a strong boost to a level of close to 10 percent,” said the authors of an analysis of the Angolan economy in the first quarter of this year.

Angolan exports continue, despite government efforts to diversify, to focus essentially on oil (around 95 percent of the total) and in geographical terms with the increasing weight of China, which this year is expected to lead the process of economic recovery worldwide.

The price of oil has risen to around US$80 per barrel, Angola expects to increase the amount of oil it extracts this year and is the second-largest exporter of the raw material to China, said the ES Research analysts.

Angola is also being helped by the International Monetary Fund (IMF), which in 2009 agreed a loan with the Angolan government of US$1 ,4 billion for “many structural projects”, of which the first tranche has already been provided and the remainder depends on compliance with criteria assessed at quarterly visits.

The investment efforts will intensify this year, with the expected support by the government for industry, which includes US$397 million in construction of infrastructures, including projects such as sugar refineries, palm oil and manioc processing factories.

In the services sector in 2010, “the execution of a plan for construction of 165 hotels across the country will begin,” another example of investments sees as contributing to “visible signs of acceleration of activities,” in the Angolan economy.(macauhub)