The rating agency Standard & Poor’s (S&P) has kept Angola’s rating unchanged at “B” in both local and foreign currency, as well as a “stable” economic outlook, according to a statement released on Friday.
In the statement, S&P said it expects public debt will continue to increase over the course of the current year, both as a result of the devaluation of the Angolan currency against the euro and the US dollar, but also due to continued budget deficits.
As a positive for Angola, the agency expects the price per barrel of Brent oil to be around US$60 in the 2018/2021 period, which will help Angola reduce the budget deficit in the medium term.
Keeping the outlook for economic growth at “stable” over the next 12 months is based on reforms announced by the government that will allow for economic growth and the reduction of public debt.
For this year S&P projects real economic growth of 2.2%, which will increase to 3.0% from 2019 to 2021. (macauhub)