IMF assesses impact of lower oil prices in Angola

13 August 2015

A mission from the International Monetary Fund (IMF) Wednesday started a working visit to Angola, to review with the government the impact of low international oil prices and their effects on the economy, the Ministry of Finance said.

The ministry said in a statement issued Wednesday in Luanda that the mission, which will end its visit on 25 August, would also discuss with the Angolan authorities issues related to the government’s economic policy in the context of the objectives and goals of the National Development Plan.

The visit will also focus on short-term policy options and their effects on the medium and long term, as well as a the preparation of the draft State Budget (OGE) for the 2016 financial year.

The statement said that an analysis of the proposed State Budget for 2016 aims to identify limitations resulting from a drop in oil prices on the international market as well as the fiscal outlook for next year.

The mission, headed by the head of the IMF’s Africa division, Ricardo Veloso, will also carry out an assessment of the medium-term fiscal framework, as an important tool for the management of public finances.

In the statement, the Finance Ministry of added that the medium-term fiscal framework protects priority spending from oil price and production volatility and the country’s need to continue to accumulate international reserves, taking into account the high external risks and continued dependence on oil to Angola.

The previous IMF mission, under Article IV, was in Luanda in June 2014, focusing on fiscal policy and the financial sector. At the time it said the government of Angola has shown strong commitment to economic growth based on the “Angola 2015” long-term strategy. (macauhub/AO)