Angola: Selected Issues

IMF Staff Country Reports, March 27, 2024

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Angola: Selected Issues

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Bibliographic details

• Published: March 27, 2024
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400271526.002

Overview

• Publication date: March 27, 2024
• Format: Selected Issue paper (IMF Staff Country Reports)
• Pages: 33
• Volume: 2024
• Issue: 081
• Series: Country Report No. 2024/081
• DOI: https://doi.org/10.5089/9798400271526.002
• Stock No: 1AGOEA2024002
• ISBN: 9798400271526
• ISSN: 1934-7685
• Subjects: Commodities; Economic sectors; Education; Gender; Gender inequality; International organization; Monetary policy; Oil; Oil sector; Women
• Keywords: Gender inequality; Global; modeling monetary policy; monetary policy credibility; monetary policy response shock; Oil; oil price shock; oil sector; Oil sector; Women

Model and Methodology

• Uses an extended semistructural New Keynesian model calibrated to mimic Angola.
• Model features:
  • Angola’s oil dependence.
  • Strong linkages between the oil sector and the exchange rate.
  • All variables in the behavioral equations are expressed as gaps, defined as percentage deviations from their trend or equilibrium levels.
• Purpose of the framework:
  • Develop a forward-looking framework that can model the impact of shocks on an economy calibrated to mimic Angola.
  • Inform monetary policy discussions with analysis of various policy trade-offs.

Shocks and Economic Mechanics

• Focus on shocks to the oil sector and their effects:
  • Influence both the cyclical and structural levels of the economy.
  • Particular attention to implications given the nature of ageing oil fields in Angola.
• Emphasizes the exchange rate as a transmission channel linked to the oil sector.

Simulations and Key Findings

• Simulations are used to analyze shocks and policy scenarios in Angola.
• Main simulation result:
  • Improving the monetary policy framework and credibility can lower output cost and economic volatility during shock periods.

Policy Implications and Analysis

• Central policy message:
  • Strengthening monetary policy framework and credibility reduces output costs and volatility when the economy faces oil-sector shocks.
• Intended use:
  • Inform monetary policy discussions by illustrating trade-offs and outcomes across scenarios calibrated to Angola’s structural characteristics.

Source: Angola: Selected Issues (IMF Staff Country Reports), March 27, 2024.

Content in this bundle

• Angola: Selected Issues; IMF Country Report No. 24/81; February 26, 2024
  • Angola: Selected Issues; IMF Country Report No. 24/81; February 26, 2024 (Markdown version)
  • Angola: Selected Issues; IMF Country Report No. 24/81; February 26, 2024 (PDF)