Angolan parliament approves draft law revising the 2016 state budget

16 August 2016

The parliament of Angola has approved in general terms the draft law on revision of the 2016 state budget, based on an oil-barrel price of US$40.9 versus the US$45 of the previous document, the Angolan press reports.

The new macroeconomic scenario revises forecasted economic growth down from 3.3 percent (original 2016 budget) to 1.1 percent (revised 2016 budget) and considers a budget deficit corresponding to 6.8 percent of gross domestic product versus the 5.5 percent deficit in the previous version.

Real GDP growth predicted for 2016 in the new document is based on year-on-year growth of 0.8 percent in the oil sector and 1.2 percent in the non-oil sector.

The non-oil sector’s performance in this scenario is justified by expected improvement in the sectors of agriculture (from 5.2 percent to 6.7 percent), construction (from 2.2 percent to 3.2 percent), manufacturing (from -11 percent to -3.9 percent) and market services (from -1.5 percent to 0 percent).

Oil production should amount to 654.6 million barrels, corresponding to average daily production of 1.793 million barrels.

This number includes production of liquefied natural gas, which may reach a daily average of 54,145 barrels of oil equivalent, less than the initially forecast daily average of 60,000 barrels. (Macauhub/AO)