The International Monetary Fund (IMF) has concluded the Post Financing Consultation (PFA) with Angola, saying recovery from 2023 shock is underway.
The Executive Board of the IMF expressed their view that government capacity to repay the Fund is adequate.
However, it is subject to risks.
Angola remained resilient in the face of significant challenges in 2023, including weaker oil production and prices.
“The Fund added that the authorities’ efforts to follow through on economic reforms started during the EFF 2018–21, including in the areas of fiscal management, revenue mobilization, debt management, monetary policy, and financial stability, have helped enhance the resilience of the Angola economy,” a statement read.
“Output growth remained positive at 0.9 percent in 2023, thanks to the recovery in oil production in Q4; and is expected to stabilize at an average of 3.2 percent in the medium term, aided by the authorities’ continued structural reform and diversification agenda.
“Inflation increased to its highest level in recent years, due to currency depreciation and supply constraints. However, inflation is expected to start declining in the second half of 2024 with improved monetary policy transmission and fading supply shocks.
“Spending adjustments helped contain the impact of weaker oil prices and lower production in 2023, though the gains from fiscal consolidation were lower-than-anticipated.”
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