Angola: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Angola
IMF Staff Country Reports, June 11, 2018
Source details
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- Angola: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Angola
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Bibliographic details
- Published: June 11, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484360194.002
Overview and context
- Publication date: June 11, 2018
- Core message: Lower oil prices since mid-2014 have placed the Angolan economy under stress.
- Political context: Policy mix in the run-up to the August 2017 elections—fiscal expansion and pegged exchange rate—led to a further erosion of fiscal and external buffers.
- Presidential focus: President João Lourenço has focused attention on improving governance and restoring macroeconomic stability.
Macroeconomic shock and policy responses
- Shock:
- Lower oil prices since mid-2014.
- Initial authorities' reaction:
- Significant fiscal tightening.
- Exchange rate adjustments.
- Foreign exchange quantitative restrictions.
- Subsequent policy developments:
- Fiscal expansion combined with a pegged exchange rate before August 2017 elections exacerbated vulnerabilities.
Government stabilization program (envisaged measures)
- Upfront fiscal consolidation.
- Greater exchange rate flexibility.
- Reducing the public debt-to-GDP ratio to 60 percent over the medium term.
- Improving the public debt profile.
- Settling domestic payments arrears.
Subjects and keywords (as listed)
- Subjects: Exchange rates, External debt, Foreign exchange, Oil prices, Prices, Public debt
- Keywords: Angolan authorities, BNA law, CR, current account, debt dynamics, debt ratio, Europe, exchange rate, Exchange rates, foreign exchange, GDP, GDP deflator, Global, ISCR, Oil prices, price, priority infrastructure investment, real GDP, reform agenda, Sub-Saharan Africa
Content in this bundle
- Country Report