Angola will produce more than 2 million barrels of oil per day from 2018

29 April 2016

Angola will produce more than 2 million barrels of oil per day from 2018, when gross domestic product (GDP) growth will be two tenths of a percentage point above the government forecast of 3.3 percent this year, according to the Economist Intelligent Unit (EIU).

The EIU projects oil production will grow continuously between 2016 and 2020, with minimal increments, but enough for the country to produce 2.095 million barrels per day in the last year of the period under consideration.

Economic growth in the period will see some fluctuations, with the EIU projecting a rate of just 1.1 percent this year, compared to a government forecast of 3.3 percent.

The Angolan economy will return to more vigorous growth in 2017, with a rate of 3.0 percent and in 2018 is expected to post growth of 3.5 percent. In 2019 and 2020 GDP growth is expected to slow to rates of 2.9 percent and 2.5 percent, respectively.

Consumer prices will tend to fall, with the inflation rate returning to single digits over the analysis period, with the major exception being 2016, when it is forecast to total 22.1 percent.

The budget deficit as a percentage of GDP will peak at 6.8 percent this year, before falling back to more moderate values in 2017 and 2018, of -3.0 percent and -2.7 percent, before rising again in the last two years of the period under consideration, to -3.4 percent in 2019 and -3.7 percent in 2020. (macauhub/AO)