Angola’s State Budget for 2012 has no deficit

19 October 2011

Luanda, Angola, 19 Oct – The General State Budget for 2012 in Angola outlines revenues of 3.5 trillion kwanzas and expenditure of the same amount, and thus registers no budget deficit, the President of Angola, José Eduardo dos Santos said Tuesday in Luanda.

At the start of the legal year in his State of the Nation presentation at the National Assembly, Eduardo dos Santos said that the State Budget was based on a macro-economic scenario that included real gross domestic product (GDP) growth of 12 percent, with 13.4 percent growth of the oil sector and 12.5 percent growth of the non-oil sector and inflation of 10 percent.

The Angolan President also said that overall public debt would remain within internationally-accepted secure levels.

According to Santos, the low cost of foreign debt, along with an oil price recovery led to an improvement in the current account balance, which posted a US$7.572 billion deficit in 2009, and a deficit of just US$348 million in 2010.

Cited by Angolan news agency Angop, Santos noted that Angola continued to receive recognition from the international community of its growing macro-economic robustness, which was proven by the reports published in 2010 by the International Monetary Fund (IMF) and the three international sovereign debt ratings agencies.

In relation to 2011, he said that gross domestic product growth was expected to be around 3.7 percent, which was lower than had been outlined in the General State Budget, due to reduced oil production by BP for technical reasons which, despite this, was partly offset by a rise on the average annual crude oil price and by increased growth of the non-oil sector. (macauhub)