Angola has set up conditions for successful development, Economy Minister says

10 September 2013

Angola has established the conditions it needs for successful development, based on macroeconomic stability, the Economy Minister, Abraão Gourgel said recently in Luanda.

According to the minister, who was speaking at the opening of the Russia-Angola Business Forum, macroeconomic and financial stability was achieved through budgetary discipline and an increase in state revenues.

He said that fiscal discipline along with a stability-focused monetary policy had also made it possible to reduce annual inflation in a consistent way since 2002 (when it was still above 100 percent), to less than 10 percent in 2012, without affecting growth.

According to Abraão Gourgel, once the difficulties of the global crisis of 2008 had been overcome, it was possible to ensure exchange rate stability and the exchange rate for the kwanza agaist the US dollar has remained at below 100 kwanzas since 2010.

He said that following the financial crisis in 2008 and its consequences for trade an international finance, growth had slowed to around 3 percent, between 2009 and 2011, but increased again to 6.8 percent in 2012.

“This year we would like to grow by more than last year, depending on the performance of the oil sector, as the non-oil sector is expected to see growth of over 9 percent,” he noted.

According to the minister the results of successful macroeconomic management, particularly overcoming the impact of the global crisis, have been publicly recognised by international organisations, including the IMF.

“This recognition also came from the World Bank and from the three main credit rating agencies, which gave Angola a B rating,” he said.

He also noted a greater dynamic in the agriculture and industry sectors as a “result of the strategy to diversify the production structure in order to gain freedom from dependence on the oil sector.

Finally, the minister noted that between 2002, when the civil war ended, and 2008, Angola’s growth rate averaged 17 percent per year. (macauhub)