The Standard Bank-Angola estimates that the annual inflation in the country is to go down around 16.1% until the end of the year, after a peak of 27.7% in January and 24.4% in May, this year.
The studies of the bank published Wednesday show considerable progress of Angola, towards economic stabilization, embodied in the control and inflation reduction in the strengthening of the national currency (kwanza) which has gained some positive trend, that is 28.2% appreciation in relation to the dollar (USD) since the beginning of the year and 49.2% in the previous year.
However, the report presents as a key factor the price of a barrel of oil, which has stood above 100 dollars since the beginning of the year, as a major contribution to the stabilization and growth forecast of the Gross Domestic Product (GDP).
“Despite the pandemic and the impact of global measures to reduce carbon emissions, Angola managed to mobilize investments in the oil sector to stabilize production, which has been decreasing since 2016”, according to what the bank understands.
At the same time, the Standard Bank shows that the reduction of taxes on essential products and the implementation of a Strategic Food Reserve, since the beginning of the year, have also contributed to inflation reduction.
In thel institution´s view, the macroeconomic situation and the prospects for Angola, point to a set of positive developments for the national economy, despite challenges as well.
The report which was presented by Fáusio Mussá, Chief Economist at Standard Bank for Angola and Mozambique, states that the results are being achieved due to the implementation of structural reforms still in progress in the country.
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“Angola has successfully implemented, since 2018, a set of economic reforms, supported by the International Monetary Fund (IMF), such as currency stability, inflation reduction, public accounts balance and public debt reduction”, said the specialist.
For this bank, the maintenance of the fuel subsidy has contributed to the reduction of inflation, despite being a temporary measure, as it distorts economy prices.
Meanwhile, standard Bank-Angola, with a commercial network of 19 branches and three company centres, is present in Cabinda, Luanda, Cuanza Sul, Benguela, Huíla, Huambo and Namibe provinces.