Angola: 2024 First Post-Financing Assessment-Press Release; and Staff Report

International Monetary Fund

No 2024/224, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper presents Post Financing Assessment (PFA) Consultation with Angola. Angola’s capacity to repay the IMF is adequate though subject to risks. Angola remained resilient in the face of significant challenges in 2023, including weaker oil production and prices. Spending adjustments helped contain the impact of weaker oil prices and lower production in 2023, though the gains from fiscal consolidation were lower-than-anticipated. The nonoil primary fiscal deficit (NOPFD), estimated at 4.4 percent of gross domestic product (GDP) in 2024, is expected to steadily decline in the medium term on modestly improving non-oil revenues, moderately lower current and capital expenditures, and savings from fuel subsidy reform. Continued efforts on enhancing the monetary policy framework are needed to reduce inflation and support non-oil medium-term growth. Implementing broad ranging structural reforms is vital to improve business environment and maintain growth in the context of a long-term decline of the oil sector. Addressing issues related to governance, gender, and climate change remains critical to achieving economic diversification and sustainable growth.

Keywords: anchor inflation expectation; private sector borrowing costs; oil price shock; Angola economy; inflation reduction; oil dependence; Oil prices; Oil production; Energy subsidies; Global (search for similar items in EconPapers)
Pages: 44
Date: 2024-07-15
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