The Angolan economy will grow 1.4 percent in 2020 after four years of recession, according to projections by the South African Standard Bank Department of Economic Studies.“
Angola’s economy is expected to emerge from the four-year recession in 2020, with renewed investments in the oil sector helping to stabilize production at 1.4 million barrels per day, although temporarily, as a result of improved environment and structural reforms, ”reads the October report on African financial markets.
In the document, sent to investors and to which Lusa had access, analysts at the African biggest bank slightly worsened Angola’s growth forecast by 0.1 percentage point by 2020, forecasting growth of 1.4 percent, “ expecting the slow decline in inflation and Kwanza nominal depreciation to continue to hurt aggregate demand. ”
Most likely, they add, “the economy will continue in recession this year, with GDP contracting by one per cent as the expected positive contribution from exports is insufficient to eliminate the negative impact of both public and private spending, with investment not to grow as much as necessary”.
The Angolan government “will remain committed to complying with the International Monetary Fund (IMF) program, which greatly assists in the structural reforms the country needs to ensure a return to macroeconomic stability,” Standard Bank analysts say.
The report anticipates that the second review of the IMF program, expected to be completed by the end of this month, will allow the disbursement of an additional $ 250 million (€ 226.8 million).