Angola’s economy is expected to grow this year at a rate of 0.6%, according to the latest forecast by the Economist Intelligence Unit (EIU), noting that the government itself has revised growth in 2016 from 3.3% to 1.1%.
The EIU said that the oil sector, with a previous forecast of 4.8% growth, will not grow by more than 0.8%, both because the international price per barrel is expected to remain low and Angolan production is weak, and is not expected to exceed 1.79 million barrels per day.
The non-oil sector should also see weak growth, with the government forecasting growth of 1.2% against a previous forecast of 2.7%, and per capita GDP should continue to contract for a third consecutive year.
For 2017 the EIU projects economic growth of 3.0% due to increased public and private spending, as oil prices are expected to increase.
In 2016-2020, the Angolan economy, according to the EIU should grow at an average rate of 2.5%, which compares with a rate of 4.7% between 2011 and 2015. (macauhub/AO)