Angolan economy expected to have almost no growth in 2016

24 January 2017

The Gross Domestic Product (GDP) of Angola is expected to have registered a marginal growth of just 0.1% in 2016, said on Monday in Luanda the director of the International Studies and Relations Office of the Ministry of Finance.

Patrício Neto, during the presentation of the Annual Debt Plan of the Angolan State in 2017, said the budget deficit would have been 2.3% of GDP, lower than the forecast contained in the revised state budget, of 6.8%, up 1.3 percentage points on the forecast included in the original version of the budget.

The increase in the budget deficit was at that time explained by the need to give the economy a “resuscitation boost” through public investment, “which has been the driver of growth on the demand side.”

Angola is also expected to have ended 2016 with net foreign reserves in the order of US$22 billion, or enough to cover 8.1 months of imports.

The Angolan government plans in the State Budget for 2017 a budget deficit of 5.8% of GDP, amounting to 1.139 trillion kwanzas (US$6.8 billion) and economic growth of 2.1%. (macauhub)