Luanda — Angola experienced, in the first quarter of 2024, the highest economic growth in the last nine years, with the successive slowdown in inflation.
According to a government report, this performance is the result of the effect of exchange rate stability, the gradual withdrawal of fuel subsidies and the updating of public transport prices.
Another factor pointed out in the document is the increase in the supply of nationally produced goods, as reflected in the Gross Domestic Product (GDP), which recorded its highest growth rate since 2015, with 4.6%.
The document adds that, in recent years, the Angolan economy has shown 'remarkable resilience', overcoming adversities imposed by the national and international context, having earned praise from the International Monetary Fund (IMF).
This development represents 'a significant turnaround', especially in the face of previous pessimistic forecasts around the reforms implemented by President João Lourenço and his economic team.
The report recalls that, in recent years, several scholars and analysts have predicted the 'imminent collapse' of the national economy, based on conjectures 'that have not materialized'.
He considers that such forecasts, often accompanied by 'apocalyptic scenarios', did not take into account the adaptability and effectiveness of the policies adopted by the Government.
It also recalls that the IMF publicly acknowledged the overcoming of the economic shocks faced by Angola in 2023, highlighting the elegance with which the country's economy dealt with these difficulties.
This recognition validates and reinforces the economic diversification strategy, underway in the country, and in debt management procedures and prudent fiscal policies, under development, the document adds.
Growth and public debt
Angola's GDP grew by 5% in 2023 and is expected to reach 6% this year, with the contribution of the Agriculture, Mining and Industry sectors.
Meanwhile, the inflation rate was reduced by 18% in 2022 and 12% the following year, with a projected 10% for 2024, in a performance in which the restrictive monetary policy measures and the control of the prices of essential goods adopted by the Executive were crucial.
In turn, the restructuring of the Angolan debt was successfully completed, reducing its burden by 10%, while the external debt was renegotiated, resulting in more favorable terms for the country.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Net international reserves increased to US$10 billion in 2023, providing greater economic stability.
In the field of employment, the unemployment rate fell from 30% in 2022 to 25% in 2023, a period in which 100 thousand new jobs were created, particularly in the agricultural, industrial and infrastructure sectors.
Investments and infrastructure
In 2023, Angola managed to attract US$1.5 billion in foreign direct investment, with the infrastructure, mining and energy sectors being the biggest beneficiaries.
In this area, two thousand kilometers of new roads were built in 2023, with a total investment of one billion US dollars, with the construction sector creating 40 thousand new jobs.
In the health and education sectors, US$600 million was invested to improve hospitals and health centres, resulting in an increase in life expectancy to 62 years.
The report also highlights that the education sector benefited from US$400 million for the construction of new schools and the training of teachers, raising the literacy rate to 85%.
The IMF's recognition of Angola's economic achievements not only refutes negative forecasts, but also underscores the importance of visionary leadership and hard work, the document said.
He adds that the resilience shown by the Angolan economy serves as an example for other nations facing similar challenges.
With prudent macroeconomic policies and continuous structural reforms, Angola has a promising path to sustainable growth, the report stresses, considering that overcoming difficulties and international recognition are reasons for celebration and reflection on the effectiveness of the strategies adopted by the Government. OPF/IZ/DOJ
