IMF Staff Country Reports

This Selected Issues paper focuses on harnessing non-oil economic growth and its impact on economic diversification in Angola. While Angola’s economy has heavily relied on oil, employment remains concentrated in the non-oil sector. Human capital and education investment reforms support diversification. Efforts to improve the labor force’s skills will serve Angola well in its pursuit of diversification. In addition, addressing Angola’s weak social infrastructure, particularly newborn and children health outcomes will be important to support medium- and long-term diversification. Strengthening macroeconomic stability is a prerequisite for advancing Angola’s diversification plans. Bolstering the macroeconomic environment helps create fiscal space and reduce debt financing costs for necessary infrastructure spending. A robust enabling environment for credit growth could yield tangible benefits for economic diversification. Emerging market economies can experience an increase in output of up to 2 percent following the implementation of reforms related to business regulation and domestic credit markets.