Angola expected to have one of world’s biggest economic growth rates in 2012

2 June 2011

Luanda, Angola, 2 June – In 2012 Angola is expected to have one of the world’s largest economic growth rates at 10.5 percent, and will be exceeded only by the economies of Niger (15.4 percent) and Iraq (12.6 percent), according to the International Monetary Fund’s (IMF) World Economic Outlook.

Cited by Angolan weekly newspaper Expansão the IMF raised its forecasts for growth of the Angolan economy in relation to projections published in October 2010, from 7 percent to 7.8 percent in 2011 and from 6.3 percent to 10.5 percent in 2012.

Estimated growth for this year (7.8%) also represents a significant recovery against the 1.6 percent gross domestic product (GDP) growth posted in 2010.

The IMF’s projection for this year are slightly higher than the figures announced by Angola’s economy minister, Abraão Gourgel, who projected growth of 7 percent, of which 2.5 percent will be driven by the oil sector and the remainder by other sectors of the economy.

The minister also said that the current balance of payments was positive, which had made it possible to re-establish levels of net foreign reserves, from their lowest point, of US$12 billion at the end of 2009, to US$17.6 billion in 2010.

According to the IMF the current account balance is also improving, from a deficit of 1.8 percent of GDP in 2010 to a surplus of 6.2 percent of GDP in 2011 and 9.5 percent in 2012.

As compared to estimates published in October, 2010 Angola’s position has improved, as, at the time, projections pointed to a current account balance of 1.3 percent of GDP in 20111 and 3.3 percent next year.

Average inflation is expected to rise from 14.5 percent in 2010 to 14.6 percent this year and fall to 12.4 percent in 2012.

For this indicator, the IMF’s projections are worse in relation to October, 2010, as at that time inflation was expected to be 13.3 percent in 2010, 11.3 percent in 2011 and 10.9 percent in 2012.

As well as posting growth of more than average for the world economy (4.5 percent in 2012) Angola will also post bigger growth than emerging markets (6.5%), for sub-Saharan Africa (5.5% in 2011 and 5.9% in 2012) and African oil exporting countries (6.9 percent in 2011 and 7 percent in 2012). (macauhub)