Angola’s economy is forecast to grow by 3.0% in 2020/2021, the Ministry of Finance estimated, as well as confirming the recession from 2016 to 2018 due to declining oil production.
“The real business cycle of the economy showed a recession until 2018, registering negative growth rates in the order of 2.6%, 0.1% and 1.1% for 2016, 2017 and 2018, respectively,” said the report on the Medium Term Indebtedness Strategy (2019-2021), approved last week by the Council of Ministers.
“This performance was due to the low levels of oil production and the lower economic activity of the non-oil sector,” added the text, which also forecasts economic growth of 0.4% this year and 3.2% for 2020 and 2021.
The Ministry of Finance document projects that in the medium term economic growth will be 3.0%, with the oil sector growing at a rate of 1.7%, bolstered by a projected increase in production and the non-oil sector at a rate of 3.5%, “due to the improved business environment that will foster private sector investment in the economy.”
Inflation, which has been declining in recent quarters, “may reach 7.9% by 2021, and the current account will remain at a deficit, mainly as a result of increased imports in the balance of trade and payment of external interest,” the government expects. (Macauhub)