## Angola: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Angola

_IMF Staff Country Reports, March 27, 2024_

## Source details

**Canonical URL:** [Angola: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Angola](https://www.imf.org/en/publications/cr/issues/2024/03/27/angola-2023-article-iv-consultation-press-release-staff-report-and-statement-by-the-546887)

## Other formats

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## Bibliographic details
- Published: March 27, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400271380.002

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### Overview
- Angola’s economic recovery in 2021/22 was nearly halted in 2023 by a double shock in the first half of the year: weakening in the oil sector and the end of the debt moratorium.
- Growth is estimated at 0.5 percent for 2023.
- The Report covers macroeconomic developments, projections, and policy recommendations for near-term stabilization and medium-term resilience.

### Macroeconomic developments and sector outcomes
- 2023 aggregate growth: 0.5 percent.
- Oil sector in 2023: estimated contraction of 6.1 percent.
- Non-oil sector in 2023: softened growth at 2.9 percent.
- The near-term outlook: economic growth is projected to recover, supported by improved oil production and recovery in the non-oil sector.

### Inflation and exchange rate dynamics
- Inflation is expected to remain temporarily elevated in 2024 and to gradually decline thereafter.
- Key drivers of elevated inflation: effects of the subsidy removal and the pass-through from nominal exchange rate depreciation.
- Policy direction: continued transition toward an inflation-targeting framework and greater exchange rate flexibility is recommended for the BNA.

### Monetary policy and operations
- Recent monetary policy tightening is welcomed by IMF staff.
- Remaining operational priorities:
  - Align the interbank market interest rate with the announced policy rate.
  - Improve monetary operations to ensure the interest rate corridor functions as announced.
  - BNA and the ministry of finance should coordinate money market operations to align interbank liquidity conditions with the announced interest rate corridor.
- Fiscal domestic financing should be undertaken through medium- to long-term issuances to support monetary objectives.

### Policy recommendations (summary)
- Continue monetary policy tightening where appropriate to anchor inflation expectations.
- Strengthen coordination between the central bank (BNA) and the ministry of finance on money market operations.
- Align interbank market interest rates with the announced policy rate and interest rate corridor.
- Undertake fiscal domestic financing with medium- to long-term issuances to reduce monetary financing pressures.
- Advance the transition toward an inflation-targeting framework and greater exchange rate flexibility.

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- **1agoea2024001**
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_Source: https://www.imf.org/en/publications/cr/issues/2024/03/27/angola-2023-article-iv-consultation-press-release-staff-report-and-statement-by-the-546887_