"The Government remains focused on diversifying the economy, but more needs to be done," Tiago Dionísio told Lusa when asked whether the creation of conditions for betting on other sectors of the economy is a priority for the Government of João Lourenço.
"The oil sector currently represents about a third of Angola's GDP and about 50 percent of public revenues, which compares with 46 percent and between 75 to 80 percent, respectively, a decade ago and reflects mainly the sharp drop in oil and production prices in recent years, "said the chief economist at the Eaglestone consultancy.
Angola, he said, "remains highly dependent on oil exports, which represent more than 95 percent of the total, which has strong implications for the country's external accounts and reduces the evolution of the exchange rate".
In declarations to Lusa in the week that marks the 45th anniversary of Angola's independence, Tiago Dionísio foresaw "some economic recovery in 2021, or at least a stagnation" and justified the forecast "with the dissipation of the negative impact of the covert pandemic. 19 ".
Oil prices, however, will remain relatively low and crude production in the country will continue to fall, "which means that the expected recovery in the non-oil sector next year is likely to be insufficient to offset the decline in oil. oil activity ".
The restructuring of the economy is, therefore, essential to balance public finances in Angola, defends the analyst: "Accelerating structural reforms, improving governance and continuing the fight against corruption continue to be crucial to improve investor sentiment and attract foreign direct investment, as these measures could help improve growth in the non-oil sector and, ultimately, the country's overall economic outlook, "said Tiago Dionísio when asked about the evolution of the economy in the medium term.
The reforms, he concluded, must continue in the coming years because "maintaining a path of fiscal consolidation and reduction of public debt, lowering inflation, completing the transition to a flexible exchange rate regime and improving governance are some examples of what could leverage to diversify. and thus improve the medium and long term growth prospects ".
