Angola: 2007 Article IV Consultation: Staff Report; Staff Supplement and Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Angola
IMF Staff Country Reports, October 25, 2007
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- Angola: 2007 Article IV Consultation: Staff Report; Staff Supplement and Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Angola
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Bibliographic details
- Published: October 25, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451800555.002
Economic performance and macroeconomic stability
- The staff report highlights recent economic performance and macroeconomic stability in Angola.
- Growth in the medium term is expected to rely increasingly on the non-oil sector.
- A potential appreciation of the real exchange rate could reduce competitiveness.
Fiscal policy and public spending risks
- A key challenge identified is ensuring that political pressure to scale up public spending does not undermine macroeconomic stability.
- The report warns that scaling up public spending without regard to macroeconomic constraints could threaten stability.
Risks to public and external debt sustainability
- Lower output growth and oil revenues than envisaged in the baseline scenario could jeopardize public and external debt sustainability.
- Dependence on oil revenues makes debt dynamics sensitive to oil-output and oil-price developments.
Reform priorities and policy recommendations
- Reforms to promote private sector development in the non-oil sector are critical to support medium-term growth.
- Strengthening policies that preserve macroeconomic stability while managing public spending pressures is essential.
Source: IMF staff report for the 2007 Article IV Consultation on Angola
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