Angola expected to post economic growth of 8 pct in 2012

26 August 2011

Luanda, Angola, 26 Aug – Public investment and a rise in oil prices are expected to allow Angola to post economic growth of 8 percent next year, the World Bank economist for Angola and Mozambique, Ricardo Gazel said cited by financial news agency Bloomberg.

Growth of the Angolan economy, the second-largest oil producer in sub-Saharan Africa, is expected to total 5 percent this year, Gazel estimated.

According to the World Bank economist, oil accounts for over 50 percent of Angola’s Gross domestic Product (GDP), 80 percent of state revenues and over 90 percent of exports.

The fall in oil prices in 2009 led to a significant drop in Angola’s foreign currency reserves and forced Luanda to reduce its public investment and infrastructure construction programme.

“The economic outlook for Angola is solid (…) Today, Angola is in a completely different position and it is expected that it will re-launch investments in the non-oil sector, which will stimulate growth even further,” said Gazel.

The drop in oil production, which is expected as a result of maintenance work, is expected to be, “more than offset,” by a rise in crude oil prices, added the economist, who also expects a rise in public investment before the 2012 elections.

Gazel said he expected a budget surplus of 8 percent of GDP in 2011 and a rise in foreign reserves to over US$20 billion (13.8 billion euros), thus making it easier for Luanda to fund its public investment programmes without issuing on debt. (macauhub)