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Angola’s economy growth expected an average 7.1 percent in next five years

Angola

Angola

New York News: Angola’s economy growth expected an average 7.1 percent in next five years. The data were released in Luanda by the Angolan economist, Manuel Júnior.

According to Manuel Júnior, with the range of 7.1% figure, strongly driven by the non-oil sector boost, the country expect an increase of of 9.5 percent this period, compared with 1.75% in the oil sector.
Addressing a lecture on the Importance and relevance of training and qualification of the local staff” during a forum on Economic Growth and Sustainable Human Development, the economist said that since 2006 the trend remains in non-oil sector to grow more than the sector Oil. According Angolan economist, Manuel Júnior this points out to an important indicator of the economic diversification process underway in Angola.

He also stressed that in the past five years Angola has grown at an average annual rate of 9.2% taking into account the non-oil production has nearly doubled in that period.

“This growth was primarily driven by public investments that have created positive externalities for growth in the private sector, a segment that should be the engine of economic growth,” he stressed. high growth rate in recent years was driven by high international prices for its oil.

Angola became a member of OPEC in late 2006 and its current assigned a production quota of 1.65 million barrels a day (bbl/day). Oil production and its supporting activities contribute about 85% of GDP. Diamond exports contribute an additional 5%. Subsistence agriculture provides the main livelihood for most of the people, but half of the country’s food is still imported. Increased oil production supported growth averaging more than 17% per year from 2004 to 2008.

A postwar reconstruction boom and resettlement of displaced persons has led to high rates of growth in construction and agriculture as well. Much of the country’s infrastructure is still damaged or undeveloped from the 27-year-long civil war. Land mines left from the war still mar the countryside, even though peace was established after the death of rebel leader Jonas SAVIMBI in February 2002. Since 2005, the government has used billions of dollars in credit lines from China, Brazil, Portugal, Germany, Spain, and the EU to rebuild Angola’s public infrastructure.

The global recession that started in 2008 temporarily stalled economic growth. Lower prices for oil and diamonds during the global recession slowed GDP growth to 2.4% in 2009, and many construction projects stopped because Luanda accrued $9 billion in arrears to foreign construction companies when government revenue fell in 2008 and 2009.

Angola abandoned its currency peg in 2009, and in November 2009 signed onto an IMF Stand-By Arrangement loan of $1.4 billion to rebuild international reserves. Consumer inflation declined from 325% in 2000 to about 10% in 2012. Higher oil prices have helped Angola turn a budget deficit of 8.6% of GDP in 2009 into an surplus of 12% of GDP in 2012. Corruption, especially in the extractive sectors, also is a major challenge.