Angola’s economy is expected to grow 3.3 pct in 2016

8 January 2016

Angola’s economy is expected to grow this year by 3.3 percent, after closing 2015 with growth of 3 percent, both less than half the 6.8 percent growth registered in 2014, before the fall of oil prices, according to a World Bank report.

The Global Economic Prospects report released Thursday in Washington, showed that Angola is this year expected to grow slightly more than in 2015 but remaining below the economic growth forecast for Africa as a whole, which is expected to grow from 3.4 percent in 2015 to 4.2 percent in 2016.

“Economic activity in sub-Saharan Africa slowed to 3.4 percent in 2015, down from 4.6 percent in 2014, as a result of lower prices of raw materials, of an economic slowdown in major trading partners, serious infrastructural difficulties, political instability and a lack of electricity,” said the report, adding this was “the weakest economic performance of the region since 2009.”

The slowdown in economic growth, the document said, “was more pronounced among oil exporters,” namely Angola and Nigeria, the largest exporters in the region, but the outlook was moderately positive.

The World Bank report points out, for Angola, that “it is expected that oil prices will remain low, tax revenues are likely to continue to decline and create budget deficits.” (macauhub/AO)