Angola: 2024 First Post-Financing Assessment-Press Release; and Staff Report
IMF Staff Country Reports, July 15, 2024
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- Angola: 2024 First Post-Financing Assessment-Press Release; and Staff Report
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- Published: July 15, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400282027.002
Capacity to Repay and Risk Assessment
- Angola’s capacity to repay the IMF is assessed as adequate though subject to risks.
- Key risk drivers include the long-term decline of the oil sector and volatility in oil production and prices.
2023 Performance and Fiscal Adjustments
- Angola remained resilient in the face of significant challenges in 2023, including weaker oil production and prices.
- Spending adjustments in 2023 helped contain the impact of weaker oil prices and lower production, though the gains from fiscal consolidation were lower-than-anticipated.
Non‑oil Primary Fiscal Deficit (NOPFD) and Medium‑Term Outlook
- The nonoil primary fiscal deficit (NOPFD) is estimated at 4.4 percent of gross domestic product (GDP) in 2024.
- NOPFD is expected to steadily decline in the medium term due to:
- modestly improving non-oil revenues;
- moderately lower current and capital expenditures;
- savings from fuel subsidy reform.
Monetary Policy and Inflation
- Continued efforts on enhancing the monetary policy framework are needed to:
- reduce inflation; and
- support non-oil medium-term growth.
Structural Reforms and Diversification
- Implementing broad ranging structural reforms is vital to:
- improve the business environment; and
- maintain growth as the oil sector declines over the long term.
Governance, Gender, and Climate Considerations
- Addressing issues related to governance, gender, and climate change is critical to achieving economic diversification and sustainable growth.
Source: Angola: 2024 First Post-Financing Assessment-Press Release; and Staff Report (IMF, July 15, 2024).
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