"There are significant risks regarding the capacity of macroeconomic policies and structural reforms to ensure external sustainability, so a new recession this year is a possible scenario if the risks materialize, like a new wave of infections or if the planned measures fail to stimulate domestic demand, especially investment," said Helena Afonso.
In an interview with Lusa about Angola, regarding the release of the UNDESA report on the Economic Situation and World Prospects, the analyst added that "the economic difficulties continue in Angola, with 1.2 percent growth expected this year.
Last year, "given the lower external demand, the drop in oil prices and restrictive measures to combat the pandemic, it is estimated that the economy contracted for the fifth consecutive year, around 3 percent," he noted.
The government, the analyst continued, "has printed out fiscal measures to contain the pandemic, for example additional spending on health, tax deferrals on certain imports, but the fiscal response has been limited by very high levels of public debt, above 100 percent of GDP, despite the authorities' effort to keep the debt on a sustainable path.
In an interview with Lusa regarding the economic situation in Angola, Helena Afonso also pointed out that "the country's adherence to the Debt Service Suspension Initiative (DSSI) has made it possible to postpone debt payments" and, in addition, the International Monetary Fund (IMF) has also contributed.
"The fourth review of the program allowed for a new disbursement of $487 million and this will be an important source of external financing to help the country deal with this crisis," concluded the UNDESA analyst, who forecasts a reduction in inflation from 23 percent in 2020 to less than 20 percent this year due to the slowdown in the kwanza's depreciation.
