Ver Angola

Economy

Government forecasts resumption of economic growth in the order of 2.4 percent in 2022

The Government announced that it expects to resume economic growth in the country of around 2.4 percent in 2022, with the assumptions of the General State Budget (OGE) for next year centered on the “prudence of fiscal accounts”.

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According to the Minister of State for Economic Coordination, Manuel Nunes Júnior, the axes of the 2022 State Budget are in "the sense of prudence in the fiscal accounts", as in 2018 and 2019, after the "positive budget balances" were interrupted in 2020.

"Our forecast is that in 2022 we will work to continue to have positive budget balances, this is important to reduce the country's indebtedness needs and, on the other hand, we will work on the 2022 State Budget so that it is the year of economic growth recovery", said the ruler.

Manuel Nunes Júnior, who was speaking at the seat of parliament after President João Lourenço addressed the nation at the opening of the fifth legislative year, also signaled the "forecast of a global growth rate of 2.4 percent".

"Which will mean that 2022 will be the year in which we can have the country's growth recovery," noted the minister.

The President announced that the executive will propose the reduction of VAT on a set of products in the next OGE.

The announcement was made by João Lourenço. On this measure, the head of state only said that it is "a proposal to significantly reduce" the value of VAT payable on "a set of consumer goods", which will help to alleviate the cost of living, given the high values ​​of the inflation reached 26 percent in August.

Regarding the reduction in the VAT rate, currently set at 14 percent, Manuel Nunes Júnior, who did not specify the proposal to reduce this rate, said that the measure would contribute to "stabilizing and reducing the current price level of the most consumed products ".

The reduction of the VAT rate, one of the presuppositions that must be included in the proposal of the 2022 State Budget, joins the measure of exemption from customs duties on some products of the basic basket, in force since last September.

"This measure has now been announced by the President of the Republic and we are going to present, within the scope of the 2022 State Budget, a set of other measures aimed at significantly reducing VAT in relation to a set of products of wide popular consumption", said the government official.

"The proposal to reduce the VAT rate that we are going to present, I am not going to say yet what the level of reduction is, because it is still being seen at the level of technical structures, but I can say that it will be a significant reduction compared to 14 percent" , added Manuel Nunes Júnior.

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