"The economic recession is expected to have intensified in the second quarter of this year due to the covid-19 pandemic and the resulting social isolation measures," analysts argue in the latest report on African economies.
In the document, sent to clients and accessed by Lusa, this Barcelona-based consultant writes that the degradation of the economic environment between April and June has impacted public finances, "with the risk of Financial Default hanging in the air and there is little room for more public stimulus to boost economic activity.
Preliminary figures for the third quarter are also relatively negative, as oil production in Cabinda fell to its lowest level in 15 years in July and containment measures will remain in place until September in two provinces, "influencing economic activity.
The containment measures to contain the spread of the pandemic "will further depress household consumption and capital expenditures, while the confinement abroad will damage external accounts due to low demand for oil, which drags prices down," they stress.
Analysts have worsened the negative growth forecast, from 3.9 percent to 4.3 percent this year, and now anticipate an economic recovery of 0.5 percent, when last month they pointed to growth of 0.7 percent in 2021.
