Angola: 2020 General Budget Without Deficit - Forecast

Luanda — The secretary of State for Budget, Aia-Eza da Silva, declared last Tuesday, in Luanda, that the State's General Budget (OGE/2020) for next year is being elaborated having into account the need to avoid deficit and an excessive indebtedness.

In a meeting with some social partners, the secretary of State said that in this budget it is projected a nominal Gross Domestic Product (GDP) of around Akz 37 billion, considered superior to the Akz 31.7 billion projected for the year 2019.

At the meeting, chaired by the State minister for Economic Issues, Manuel Nunes Júnior, it was mentioned and increased projection of 1,5% for the Oil and Gas sector, way superior to the negative indicator of -5.2% for 2019.

The growth of the Oil and Gas sector will be supported by the restart of the production on Rala, Bare and Albacore's field, specifically on the Block 2/05, Agogo's field production, phase 1 on the block 15/06, northwest Gimboa's project (GimNW) at block 4/04.

Regarding the non-oil-gas sector, the forecast overcomes the numbers established for 2019 of 1.9% having in consideration the reforms and ongoing projects in various sectors of economic activity.

Some of the projects include the Production Support, Export Diversification and Import Substitution Programme (PRODESI), promotion of new micro, small and medium-sized enterprises (MSMEs), micro-credit and interest-rate credit, Credit Support Programme (PAC), the Integrated Municipal Intervention Plan (PIIM) and the Action for the Promotion of Employability (PAPE).

Agriculture, fisheries and their byproducts, manufacturing, market services and others linked to the public sector will be the stimulators of growth in the non-oil sector.

At the consultation meeting with social partners, the participants suggested investing in family farming, in addition to national production, with the elimination of some barriers that still imply investments.

At the meeting, the minister of State for Economic Coordination, Manuel Nunes Júnior, recalled that since 2018 the Executive has sought to control the fiscal deficit, as for the first time in three years Angola in 2018 had a surplus in its fiscal accounts, with a positive balance of 2.2% of GDP.

He stressed the need for the country to enter the path of economic growth, and admitted that in recent years the country has experienced an economic recession.

"We have to work very seriously, first to control the debt and then move towards economic growth", he said.

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