Africa Angola Budget Economy Government

Angola may grow 1% in 2021

The Ministry for Economic Affairs and Planning (MEP) estimates conservative growth of one percent for 2021, whilst the IMF, with a more optimistic projection, expects Angola to grow 3.2 percent, and may come out of successive recessions, the secretary of state for planning, Milton Reis said yesterday in Luanda.

The government’s projection for this year, which already associates the Covid-19 pandemic effect on the economy, is a contraction of 2.8 percent, well below IMF estimates of 4 percent.

Economic activity contracted 1.8% year-on-year in the first quarter and 4.6% in the second quarter of 2020.

Also read: Agreement on Chinese debt relief for Angola in prospect

Speaking at the Ministry of Economic Affairs and Planning’s (MEP’s) usual Biweekly Briefing, he stressed that the forecasts are more conservative given the uncertainties of the current economic climate.

According to the secretary of state, as part of the Extended Fund Facility (EFF) signed with the International Monetary Fund (IMF) in December 2018, which will last three years, a mission from the Fund will monitor the programme, from 5 to 12 October, with the aim of assessing the development of macroeconomic variables for the first half of 2020 and seeking to align the macroeconomic framework for the period 2020-2021.

In this regard, a meeting was held on 6 October between the staff of the Ministry of Economy and Planning and the IMF to assess the development of economic activity during the first half of 2020 and GDP forecasts for the years 2020 and 2021, taking into account the context of the Covid-19 Pandemic.

Source: Angop

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