angola

In 2022, the Angolan economy consolidates the recovery trend that began in 2021, after several years of recession. Projections point to GDP growth of around 2.9%, supported by growth of around 3.8% in the non-oil economy and around 2.2% in the oil economy, compared to GDP growth of 0.8% last year. The significant recovery of the oil sector contributed to this growth, but also that of the non-oil sector, which benefited from several factors such as the appreciation of the Kwanza in 2022, the end of COVID's restrictions, the reduction of VAT and a positive performance in agriculture.

The Angolan economy, directly impacted by the evolution of oil prices in recent years, had been in recession since 2016, which translated into an increase in the public debt to GDP ratio from 57.1% in 2015 to a peak of 136.5% in 2020, falling to 86.4% in 2021 and 56.6% in 2022, and it is expected that it will continue on this downward trajectory.

With regard to the inflation rate, although it remains high, it has shown a tendency to decrease as a result of the Central Bank of Angola maintaining a restrictive monetary policy.

The inflation rate in 2022 will have been 21.7%, and is expected to reach 11.8% in 2023. Even so, the recent depreciation of the kwanza, the high cost of foodstuffs on international markets and fuel are likely to exert some pressure on prices, which may slow the path of stabilisation of inflation.

The authorities' prudent policies have promoted the strengthening and consolidation of stability and sustainability of the Angolan economy, not only in the oil sector, but also in nonoil sectors such as finance, agriculture and telecommunications. For the next few years, the outlook for the Angolan economy remains positive, especially in the non-oil economy, and is driven by the implementation of structural reforms aimed at diversifying the economy and controlling inflation to boost domestic demand. Nevertheless, a slight decline in the oil economy is expected in the coming years, which may impact economic growth in the future.