"In 2021, major pre-pandemic reforms may contribute to a V-shaped recovery; GDP is projected to grow 3.1 percent, assuming that the private non-oil sector performs better", reads the page on Angola in the report 'Economic Perspectives for Africa 2021', which has the theme 'From debt resolution to growth: Africa's path'.
According to the document, which points to a 4.5 percent recession in 2020, "inflation is expected to decline to 14.9 percent in 2021, following the necessary monetary relief during the crisis that also put pressure on inflation ".
The biggest risk associated with the Angolan economy, say ADB analysts, "corresponds to low oil prices in 2021", but if the rise in recent weeks is sustained, "the budget deficit could narrow to 2.2 percent of GDP and the current account returns to a 4 percent surplus ".
Regarding the level of public debt above 100 per cent of GDP in 2020 and also this year, the ADB says that "the recent exchange devaluation was the main reason for the changes in Angola's public debt, of which about 80 per cent is denominated in foreign currency "and stresses that the IMF considers debt sustainable because" the main macroeconomic reforms implemented before the COVID-19 pandemic increased the country's resilience to external shocks ".
In the report, the ADB estimates growth of 3.2 percent for this year on the continent, after last year's 2.1 percent recession due to the covid-19 pandemic.
The continent "is expected to recover from its worst economic recession in half a century due to the pandemic, growing 3.4 percent in 2021, following a 2.1 percent contraction last year," the report reads.
The document emphasizes that, although the economic impact is differentiated according to the regions, "the anticipated recovery is generic".
