IMF gives positive assessment of Angolan government’s performance

14 June 2018

The International Monetary Fund (IMF) has praised the economic policy implemented by the Angolan government – in office for eight months – as it believes that efforts to achieve stabilisation are committed, it said in a statement issued in Washington cited by Angolan news agency Angop.

The document, which reports on the IMF’s monitoring of the Angolan economy, praises the Government’s efforts to restore macroeconomic stability and lists the reforms implemented throughout the period.

The policies, the IMF points out, are intended to return to macroeconomic stability and “improving governance by removing senior officials from the former Government, launching investigations into possible misappropriation of funds from various public institutions, as well as setting up a specialised unit against corruption.”

The IMF statement marks the launch of the macroeconomic stabilisation programme in early January 2018, a plan that calls for fiscal policy consolidation, greater flexibility in the exchange rate and reducing the public debt to GDP ratio to 60% over the medium term .

According to the IMF, the programme aims to improve the debt profile through a liability management operation and settlement of arrears on a national level, ensuring effective implementation of money laundering legislation.

The IMF recalls that the low price of oil and the way in which economic policy was conducted before the new government took office put Angola’s economy under pressure, and that the drastic drop in the price of oil (from 2014 onward), substantially reduced fiscal and export revenues, slowing the growth of the economy and causing a sharp acceleration in inflation.

“Thus, the need to address vulnerabilities more consistently and to diversify the economy without focusing on oil has become imperative,” the IMF said in a statement.(macauhub)