"There have been renewed efforts to attract foreign investment, but there is a clear need to improve administration, regulation and institutional capacity in the country," said Helena Afonso.
In an interview with Lusa in the week in which the UN forecasts for the world economy were released, the specialist with the role of Africa in the UN's economic affairs department stressed that "the fight against corruption must be strengthened in order to promote an environment economic and regulatory environment more conducive to investment activity".
The UN expects Angola to maintain negative economic growth this year, then recovering to a 1.5 percent expansion in 2021.
"The Angolan economy is in recession and we estimate that it will continue in 2020, as a result of the fall in oil production and the difficulties in attracting foreign investment", pointed out the economist, arguing that the forecast of return to growth next year is justified with the "recovery of domestic demand, especially of private consumption", but still that "GDP per capita will continue to contract for the seventh consecutive year".
Asked about the budgetary policy followed by the Government of João Lourenço and the relationship with the evolution of the economy, Helena Afonso stressed that "fiscal and monetary policies are gradually more proactive in the sense of encouraging economic activity" and stressed that, "in particular, tax expenditures are expected to increase in 2020, as the Government seeks to support non-oil economic activities and carry out social investments".
However, he concluded, "the lack of revenue and the relatively high costs of debt service limit fiscal capacity" and inflation, which is expected to remain at "17 percent in 2020, will continue to limit monetary policy".
