Angola’s public debt increases to 57 pct of GDP in 2015

9 November 2015

The public debt of Angola is expected to reach 57.4 percent of GDP at the end of 2015, of which 14.7 percentage points are the responsibility of national oil company Sociedade Nacional de Combustíveis de Angola (Sonangol), according to an International Monetary Fund (IMF) document.

The information is included in the IMF’s regular analysis of the Angolan economy and public accounts, completed on 28 October and published on 3 November, which for this year estimates inflation of 14 percent, far beyond the range of 7 to 9 percent predicted by the government.

The IMF report, which is also the result of meetings with Angolan government officials, recognises the strong impact of the oil crisis on the public accounts, identifying that public debt is expected by the end of the year to reach 57.4 percent of GDP, or US$58.5 billion.

It is a “significant increase” after 42.2 percent of GDP in 2014, the document said, adding that of this total, 14.7 percentage points correspond to debt contracted by state oil company Sonangol or US$15 billion, or double compared to Sonangol’s figures for 2010 in the IMF accounts.

The IMF estimates that in 2015 the budget deficit should be around 3.5 percent of GDP, compared with a state budget prepared by the Government project, in its March review, twice (7 percent) of this amount.

The IMF considers the Angolan economy to have a “stable” outlook despite continued low oil prices and a global climate of uncertainty being “considerable risks” to Angola. (macauhub/AO)