Portuguese bank BPI lowers Angola’s economic growth forecast for 2013

21 January 2014

The office for economic and financial studies of Portuguese bank BPI has lowered its forecast for growth of the Angolan economy in 2013 by 0.7 percentage points and now estimates gross domestic product (GDP) growth of 4.5 percent for the year.

According to the report for January, cited by Portuguese news agency Lusa, the economists from the Portuguese bank said that “oil production is thought to have been weaker than initially expected, which led to a downward review of the projection of real GDP growth in 2013.”

The latest figures, BPI said, point to a new drop in oil production this year. Oil is Angola’s most important source of revenues and Bpi added that “average oil production fell to 1.72 million barrels per day in the July to November period, which was lower than the 1.76 average for January to June.”

“Tax revenues from oil are expected to be in excess of the initial budget by 5 percent although the difference is significantly lower than in previous years (…),” the report said.”

This year, the BPI report said, Angola will face “new economic challenges,” starting with the new customs tariff list, which came into force in January and outlines rises of 50 percent on the tax rates for some products, such as beer and bottled water, and which was approved with “the intention of discouraging imports and ‘subsidising’ local production.” (macauhub)