IMF projects growth of 5.3 pct for Angola in 2014

9 April 2014

Angola’s economy is expected to post growth of 5.3 percent this year and 5.5 percent in 2015, the International Monetary Fund (IMF) projected in its “World Economic Outlook,” published Tuesday in Washington.

The IMF’s projections for the Angolan economy, which in 2013 posted growth of 4.1 percent, are far being in line with those from the Angolan government, which for this ear expects economic growth of 8.8 percent.

The IMF’s growth projection for Angola is, in fact, the lowest for all of the oil exporting countries, with the exception of Equatorial Guinea, which is expected to remain in recession both this year and in 2015.

The World Economic Outlook was published less than a month after the IMF’s analysis of Angola, in which it showed concern about Angola’s return to a budget deficit and called for an end to fuel subsidies, replacing them with “transfers focused on more vulnerable sectors.”

In the document the IMF said that given reduced levels of budget execution in 2013, GDP in that year grew by just 4.1 percent or less than the 5.1 percent expected by the government.

The lack of compliance with internal commitments, particularly delays to internal payments in 2010 and payments expected in 2011 are “a disappointment” to the IMF, which noted the Angolan legal system was factor that contributed to the situation. (macauhub)