Angola is expected to return to higher economic growth rates higher from this year, after in 2016 it posted growth of just 0.6%, mainly due to the fall in revenues from the sale of oil, according to the latest report from the Economist Intelligence Unit (EIU).
In an attempt to project what will happen between 2017 and 2021, the EIU analysts expect that as the price of oil rises there will be a more solid expansion of public and private consumption, which will lead prices to grow this year at a rate of 2.7%, slightly above the government forecast of 2.1%.
The report, dated 17 January, points out that the growth of Angola’s economy may be even more substantial if the agreement reached in December by members of OPEC to limit production leads to an increase in oil prices.
Saying that such an increase would only influence the first half of 2017, the report said that the Angolan economy is expected to grow by an average of 2.7% in the period between 2019 and 2021.
The report, to which Macauhub had access, said investment outside the oil sector will continue to be limited by a lack of reforms, although the government argues that the new legislation on private investment will help to reduce bureaucracy
“However, there are still some problems, including late payments to public works contractors and the fact that the government has declined financial support from the International Monetary Fund, which limits the confidence of entrepreneurs,” the document said.
Overall, the report said, a projection of average of 2.8% economic growth in the period from 2017 to 2021 is less than a third of the average recorded in the decade ended in 2014, while per capita income in 2021 will be only slightly higher than it was in 2011. (macauhub)