Angola’s economy is expected to see a growth of between 2.2% and 2.5% in 2018

25 May 2018

Angola’s economy is expected to grow between 2.2% and 2.5% this year due to the increase in both the price of oil and production of natural gas, the resident representative of the International Monetary Fund (IMF) said on Thursday in Luanda.

Max Ailer, who spoke about Angola’s outlook in the current context of the world economy at a seminar on public finance promoted by the Angolan government, said the oil price increase has had two positive effects in the sector, one direct and one indirect, based on new investments made in the oil sector.

The indirect effect is related to new investments in prospecting and exploration of oil, which is fundamental for Angolan production to remain at the current level.

Oil and Mineral Resources Minister Diamantino Azevedo recently said that the current decline in oil production in Angola is due to a lack of investment in oil surveying, prospecting and exploration.

Addressing the First Consultative Council of the Ministry of Industry, the minister said that it is essential to ensure that oil production does not fall below 1.5 million barrels per day by the end of the current term of office and recalled that the commitment assumed with the Organization of Petroleum Exporting Countries includes production of 1.6 million barrels per day.

Referring to the non-oil sector of the economy, Alier said that a more flexible exchange rate regime and a more efficient allocation of foreign exchange will have a positive effect, and recommended the maintenance of the floating exchange rate regime. (macauhub)