Angola: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Angola
IMF Staff Country Reports, March 6, 2023
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- Angola: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Angola
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Bibliographic details
- Published: March 6, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400236037.002
Economic recovery and growth
- Angola’s economy continued to recover from the coronavirus disease 2019 pandemic in 2022, supported by higher oil prices, improved oil production, and resilient non-oil activity.
- Non-oil growth was broad based despite a challenging external environment.
- Growth is estimated at 3.5 percent for 2023.
- Overall growth is expected to continue in 2023 and reach about 4 percent in the medium term, as the authorities’ structural reform agenda supports the non-oil sector.
Fiscal position and public debt
- The non-oil primary deficit increased in 2022 following higher-than-budgeted capital expenditure and higher-than-expected fuel subsidy costs.
- The public debt-to-gross domestic product (GDP) ratio fell by an estimated 17.5 percentage points of GDP to an estimated 66.1 percent of GDP, aided by a stronger exchange rate.
- The 2023 budget envisions a resumption of fiscal adjustment, which is necessary to approach the authorities’ twin medium-term fiscal and debt targets and guard against debt vulnerabilities.
External sector and reserves
- The current account is estimated to have remained in a large surplus in 2022.
- Foreign currency reserve coverage remained adequate in 2022.
Inflation and monetary outlook
- Inflation should continue its gradually declining path, reaching single digits in 2024.
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