"Angola is not expected to end fuel subsidies despite being one of the main reforms agreed with the International Monetary Fund (IMF) under the three-year financing program, which ends in December," write analysts at consultancy Eurasia.
In a comment on the evolution of the national economy, sent to clients and to which Lusa had access, this North American consultant writes that the political pressure that the Government led by João Lourenço is facing will also lead to negotiations for a second program with the IMF to be postponed until after the elections.
"The maintenance of fuel subsidies despite the IMF program demonstrates the political pressure on the Government, on the eve of the 2022 elections, with the main opposition parties gaining ground in the biggest government bastions", reads the note.
Last year, Luanda spent $950 million on subsidies that make fuel cheaper for consumers, and in the first quarter of this year alone that figure was $264 million, "putting this year's spending on subsidies on a higher trajectory than in the previous year," analysts conclude.
