Angola: Selected Issues
IMF Staff Country Reports, June 8, 2018
Source details
- Canonical URL
- Angola: Selected Issues
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Bibliographic details
- Published: June 8, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484360255.002
Summary
- This Selected Issues paper examines tradeoffs and opportunities for oil revenues in Angola.
- Angola is facing a stark trade-off between declining oil fiscal revenues over the medium term and increasing social and public investment needs.
- Opportunities do exist to make the most of Angola’s remaining oil reserves, whilst reducing its debt burden and building fiscal buffers.
- A sound fiscal framework for the use of oil revenues that includes a well-designed fiscal stabilization fund may be needed.
- Under a more active fiscal rule, public investment can be scaled up gradually, while building fiscal buffers and insulating the non-oil economy from volatile oil price movements.
- Publication date: June 8, 2018.
Key findings and analysis
- Declining oil fiscal revenues over the medium term are juxtaposed with increasing social and public investment needs.
- There are opportunities to:
- Make the most of Angola’s remaining oil reserves.
- Reduce Angola’s debt burden.
- Build fiscal buffers.
- A well-designed fiscal stabilization fund is highlighted as a necessary element of a sound fiscal framework for oil revenue use.
- A more active fiscal rule could enable:
- Gradual scaling up of public investment.
- Building of fiscal buffers.
- Insulation of the non-oil economy from volatile oil price movements.
Policy recommendations
- Implement a sound fiscal framework for the use of oil revenues.
- Design and operationalize a fiscal stabilization fund.
- Adopt a more active fiscal rule to:
- Scale up public investment gradually.
- Build fiscal buffers.
- Protect the non-oil economy from oil price volatility.
Subject and keywords
- Subject: Banking, Corruption, Crime, Expenditure, Fiscal policy, Oil prices, Oil, gas and mining taxes, Prices, Public investment spending, Taxes
- Keywords: Africa, bank, bank concentration, Corruption, corruption perception, CR, gas and mining taxes, GDP, investment, ISCR, Oil, oil price, oil price shock, Oil prices, oil revenue, price, Public investment spending, revenue, soundness indicator, Sub-Saharan Africa
International Monetary Fund. African Dept. "Angola: Selected Issues", IMF Staff Country Reports No. 2018/157, June 8, 2018.
Content in this bundle
- Country Report