IMF Executive Board Concludes 2026 Article IV Consultation with Angola
May 1, 2026
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IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: Tatiana Mossot
Phone: +1 202 623-7100Email: MEDIA@IMF.org
Press Release No. 26/135
Washington, DC – May 1, 2026: The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation for Angola.[1] This also included a discussion of the findings of the Financial Sector Assessment Program (FSAP) exercise for Angola.[2]The authorities have consented to the publication of the Staff Report prepared for this consultation.[3]
Overall growth held up at 3.1 percent in 2025, partly supported by public spending. Inflation continued to ease to 12.4 percent in March 2026, partly due to tight monetary policy. A significant decline in oil production, however, weakened fiscal and external positions in 2025. Lower oil revenues and expenditure slippages resulted in an overall fiscal deficit of 4.1 percent of GDP. Lower oil exports and the real appreciation of the kwanza contributed to a weaker current account balance; preliminary estimate is down to 0.4 percent of GDP. As of end-2025, the Banco Nacional de Angola (BNA)’s international reserves remained broadly unchanged with 7.4 months of import cover.
The medium-term outlook remains subdued reflecting a structural decline in oil revenues, with economic growth depending on the success of diversification efforts. The 2026 budget envisages fiscal consolidation and reaffirms a commitment to prudent debt management to preserve macroeconomic stability while addressing critical spending needs. The recent surge in oil prices has improved Angola’s access to international markets and is projected to provide a temporary offset to Angola’s declining oil revenues. Gross financing needs are, however, projected to rise with public debt reaching the ceiling under the Fiscal Sustainability Law in the medium term. Downside risks to this outlook include declines in oil revenues, intensification of spending pressures during the temporary oil price hike, and tighter global financial conditions. Upside risks include stronger-than-expected oil production amid elevated oil prices and an easing of global financial conditions.
Executive Board Assessment[4]
Executive Directors agreed with the thrust of the staff appraisal. They welcomed the sustained growth in 2025, notwithstanding a significant decline in the oil production, alongside easing inflation and improved market access. Directors noted that the outlook remains subject to considerable downside risks, particularly from oil price volatility and tighter global financial conditions. Accordingly, they emphasized the need to maintain prudent policies and advance structural reforms to support growth and economic diversification.
Directors welcomed the authorities’ commitment to adjust expenditure under the 2026 budget to reduce the fiscal deficit. Noting the importance of safeguarding fiscal and debt sustainability amid a structural decline in oil revenues, Directors emphasized the importance of sustained fiscal consolidation, consistent with the Fiscal Sustainability Law. They also recommended that any oil windfall should be used to reduce debt and build buffers. Measures to improve spending efficiency, accelerate progress on revenue mobilization, and advance fuel subsidy reform, while protecting the most vulnerable, are key priorities. Directors also underscored the importance of strengthening public financial management, advancing state‑owned enterprise reform, and prudent debt management to support fiscal sustainability and reduce vulnerabilities.
Directors broadly supported maintaining a tight monetary policy stance to sustain the disinflation trend, and recommended efforts to strengthen monetary policy implementation. They called for measures to increase exchange rate flexibility and ensure full and durable alignment with the market clearing rate. Directors also stressed the need for a transparent, rules based foreign exchange intervention framework to address excessive exchange rate volatility, while preserving reserves and price discovery.
Directors welcomed the progress made in strengthening regulatory and supervisory frameworks, in line with the 2025 FSAP. Noting the remaining gaps, they called for measures to reduce banking sector vulnerabilities and better mitigate risks associated with the sovereign bank nexus, legacy nonperforming loans, and foreign exchange liquidity imbalances. Directors encouraged the authorities to strengthen risk‑based supervision, operationalize the bank resolution framework and the financial safety net, and decisively resolve problem banks. They also underscored the need for prompt implementation of the FATF Action Plan to support timely exit from the FAFT grey list. Noting the need to support private sector led growth, Directors encouraged further efforts to deepen financial intermediation and improve financial infrastructure.
Directors highlighted that broad based structural reforms are essential to achieve sustainable and inclusive growth. They emphasized the need to strengthen governance, streamline business regulations, improve access to credit, and liberalize the exchange rate market to attract foreign investment.
It is expected that the next Article IV consultation with Angola will be held on the standard 12 month cycle.
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[1] Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.
[2] Under the FSAP, the IMF assesses the stability of the financial system, and not that of individual institutions. The FSAP assists in identifying key sources of systemic risk and suggests policies to help enhance resilience to shocks and contagion. The last FSAP exercise took place in 2011.
[3] Under the IMF's Articles of Agreement, publication of documents that pertain to member countries is voluntary and requires the member consent. The staff report will be shortly published on the Angolapage.
[4] At the conclusion of the discussion, the Managing Director, as Chair of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country's authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.
