Government of Angola forecasts economic growth of 7 percent this year

21 March 2011

Luanda, Angola, 21 March – The Angolan government expects the country’s economy to see economic growth of 7 percent this year with the oil sector accounting for 2.5 percentage points of that total and the remaining 4.5 percentage points generated by other sectors, Angola’s economy minister said in Luanda Friday.

According to Abraão Gourgel, who was speaking at the opening of the Angola/South Korea Economic Forum, economic growth is expected to be led by the non-oil sector this year and over the next few years.

“The General State Budget (OGE) has returned to a balanced situation, without the need to take on additional debt by the State and with the recovery of public investments to levels seen in 2009,” he noted adding that new measures would be adopted with a view to reducing domestic costs that affected prices and fed inflation.

The minister also said that the current balance of payments was positive, which made it possible to re-establish levels of net foreign reserves, from their lowest point, of US$!2 billion at the end of 2009, to US$17.6 billion in 2010.

The State, he noted, had done its part, by refurbishing transport, telecommunications, energy and water infrastructures and by building social housing and improving the urban areas of the main cities, as well as making serious investments in human capital.

”In order to ensure continuity of the projects, the Budget has earmarked resources of some US$9 billion (over 10 percent of GDP) and, for that to be met, the government is also focused on perfecting the process of effective control and management of public investment programmes,” he noted.

Gourgel also said that in the 2009/2010 period that average growth remained at close to 3 percent, which was approximately the country’s rate of population growth, and that inflation had seen a slight rise to between 14 and 15 percent per year. (macauhub)