"We anticipate that household spending in Angola will begin to recover in 2021, after the covid-19 pandemic led to a contraction in household spending this year," a household spending analysis reads.
In the report, sent to clients and to which Lusa had access, the analysts of this consultancy owned by the same owners of the financial rating agency Fitch Ratings write that "the improvement in economic growth in the country in 2021 will sustain better employment numbers, increase the disposable income of families, to which are added the government's economic stimulus measures and the support program of the International Monetary Fund".
Fitch Solutions' estimate revises upwards the previous forecast, which pointed to 0.8 percent growth in household spending in 2021, after the impact of the pandemic "on all segments of consumption, which have been heavily affected by high inflation, which is expected to stand at 21.9 percent this year".
For 2021, Fitch Solutions forecasts that prices will increase 18 percent and points out that the estimated growth of 1.7 percent is in line with the economic growth forecast for the country, which after the contraction of 4 percent this year should register an expansion of GDP in the order of 1.7 percent.
