"We now expect the growth rate of the Angolan economy to contract, estimating 0.3 percent in 2020," Thea Fourie told Lusa following the release of a report on the impact of the Covid-19 pandemic in sub-Saharan Africa.
On the other hand, he noted, China should show some flexibility in oil payments that Angola continues to give to Chinese loans.
"Chinese banks show flexibility over receiving oil shipments, reducing the difficulties in Angola's foreign currency reserves and potentially generating more foreign currency reserves through the sale of crude oil on the market," the analyst said.
Asked how Angola can prepare for the effects of the spread of the new coronavirus and historically low oil prices, the analyst agreed that "the budgetary margin is really limited to support the economy through a program of significant fiscal stimulus, especially with the country under IMF financial assistance.
Still, she said, Angola can prepare some measures to mitigate the impact of the spread of the virus, which, according to the World Health Organization in Africa, already reaches more than 400 people.
"The IMF has already made a provision for affected sub-Saharan African countries of US$50 billion under the rapid credit facility, announced on 4 March, and the poorest countries can access US$10 billion at a zero interest rate," the analyst said, adding that "there will be an effort to increase the flow of revenue after the introduction of the VAT system, with a strong probability of changing priorities in relation to current spending by suspending capital projects.
Prevention, she concluded, "is probably the best course of action for Angola.
