Angolan economy and planning minister Pedro Luís da Fonseca warned that Angola is expected to have posted a recession of 1.7% in 2018, according to new forecasts by economists consulted by financial news agency Bloomberg.
According to Angolan news agency Angop, the minister said on Friday in Benguela at the opening of a seminar on government reforms, that following contractions of 2.6% and 0.1% in 2016 and 2017 respectively, the Angolan economy was expected to have continued with that decline in 2018.
Fonseca said it had been proven that crude oil gains and the predominance of the public sector in the economy were over and that although the National Statistics Institute had yet to release official figures for Gross Domestic Product growth in 2018 , the results were not what the government had wanted.
The minister said there was a need to adopt an economic model that encourages more market activities and more private initiative, asset out in the Angolan National Development Plan.
“The government has been implementing reforms aimed at repositioning the state’s role in economic development, restricting its role to coordinator, regulator and supervisor,” the minister said.
The expected recession of 1.7% in 2018 is in line with Bloomberg’s forecast, based on estimates gathered from the economic departments of the banks and consultants usually consulted by the news agency, which revised their growth forecasts for 2018 downwards, from +1.5% to -1.7%.
For 2019, the analysts surveyed by Bloomberg expect economic growth of 2.2%, and an increase to 2.5% in 2020, while inflation is expected to remain at 16.7%. (macauhub)