Angolan economy expected to post growth of 5.3 pct in 2014

9 June 2014

Angola’s economy is expected to have grown by just 4.5 percent in 2013 and in 2014 to grow by 5.3 percent, according to the latest report on Angola from the economic and financial studies office of Portuguese bank BPI.

“According to our calculations, we expect Angola’s economic growth to have reached 4.5 percent, slightly higher than estimates from the International Monetary Fund but lower than the initial projection of 7.1 percent from the Angolan government, and should rise to 5.3 percent in 2014,” according to the report entitled “Path to Economic Diversification.”

Economic dependence on oil, which accounts for practically half of the economy, is mentioned throughout the report cited by Portuguese news agency Lusa, which also includes a special chapter on the sector.

Preliminary figures presented by the IMF on State accounts for 2013 showed a 1.5 percent deficit last year, “for the first time since 2009, marking a return to deficits after three years of surpluses of an average of 5.7 percent of GDP,” according to the report.

According to the report several factors explain this improvement compared to an initial projection of a 3.8 percent deficit, namely oil prices, which were significantly higher than estimated by the authorities, which offset a slight drop in production – 630 million barrels of oil instead f 673 million barrels. (macauhub/AO)