Africa-Press – Angola. Angola’s gross domestic product (GDP) grew by 3.8 percent in 2024 due to the recovery of the oil sector, according to the International Monetary Fund (IMF).
According to an IMF Angola Consultation Report, the recovery of the economy this year extended to the non-oil sector, exceeding previous projections.
The report, which will be released in the next few days, explains that the public debt/GDP ratio fell in 2024, benefiting from higher nominal GDP growth and sustained primary surpluses.
However, the IMF warns that “fiscal consolidation efforts have waned and buffers built up during the 2018-2021 Extended Fund Facility assistance are being eroded by fiscal slippages due to higher capital spending and slower fuel subsidy reform.”
At a press conference to briefly present the report, the IMF’s resident representative in Angola, Victor Lledo, pointed out that the document shows that inflation in Angola remains high, driven by exchange rate pressures and higher food prices.
The IMF official added that the National Bank of Angola (BNA) increased the monetary policy rate by 150 basis points in 2024 and simplified liquidity management, which resulted in a better alignment of the interbank rate with the policy rate, culminating in the devaluation of the currency (kwanza) during that year by more than 10% against the U.S. dollar.
The IMF stressed that negative market expectations and high external debt service continue to weigh on the exchange rate, but that the government’s active cash and debt management has helped to ease liquidity pressures.
Looking ahead to 2025, the IMF expects growth to remain at three percent and inflation to decline as cost-push factors dissipate.
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