The Executive Board of the International Monetary Fund confirmed that 2023 was a difficult year with many challenges, but that the foundations for recovery in 2024 and contributions from 2025 have been laid.
The Executive Board of the International Monetary Fund (IMF) expects economic growth in Angola to recover in the short term.
This scenario will result in improved oil production and the recovery of the non-oil sector.
The information is contained in the final report of the 2023 Article IV consultation with Angola, available since the end of Friday (8) on the IMF’s communication channels.
Article IV of the IMF statutes provides for the regular assessment of member states’ economic policies.
The action implies an assessment of the compatibility of policies with the stability of the international monetary system.
According to the International Monetary Fund, inflation is expected to continue to rise temporarily this year, but with a gradual decrease from 2025 onwards.
The fall in inflation indicators will occur as the effects of the removal of subsidies and the repercussion of tax depreciation nominal exchange rates decrease.
No less important, explains the Fund, is the fact that the primary budget balance should improve and remain positive, given the continuation of the reform of fuel subsidies; lower debt service from 2024 and recovery in growth.
“Downside risks to the near-term outlook include a larger-than-expected decline in global oil prices and/or domestic oil production, as well as a delay in the implementation of fuel subsidy reform. Upside risks would primarily result higher than expected oil prices”, it reads.
