The International Monetary Fund (IMF) has lowered its economic growth projection for Angola in 2025 to 2.4% down from 3% from the previous forecast as a result of increased risks from falling oil prices and tightening external financing conditions.
Angola, an important oil exporter in Southern Africa, struggled to pay another $200 million in additional security for a $1 billion loan from JPMorgan when global markets were in a state of upheaval. It illustrates the risks that smaller, open economies face with structural dependence on external financing.
The IMF’s appraisal which was undertaken during a Post-Financing Assessment mission to Luanda signals that the downward reassessment does imply risks to Angola’s fiscal performance. Regardless of these risks, the IMF team is reassured by the Angolan government’s dedication to implementing mitigating measures to address any emerging risks.
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The IMF’s observations will be presented to the Executive Board in July. During the mission, Mr. Abebe Aemro Selassie, head of the IMF Africa Department met with President Joao Lourenco and confirmed that the IMF is prepared to continue providing technical assistance to support Angola’s efforts to stabilize its economy.
Angola’s economy saw a significant recovery in 2024 with real GDP growth of 4.4%, as a result of increased oil production and a recovery in the non-oil sector. Nevertheless, the recent difficulties highlight the need to remain diligent and proactive in ensuring economic stability.
