"The IMF Board of Directors today completed the sixth review of Angola's economic program, supported by an Expanded Financing Program, and concluded Article IV consultations; the administration's decision allows an immediate disbursement of around 748 million dollars, bringing the total made available under the agreement to around 4.5 billion dollars", reads the statement released this Thursday.
"Angola's economy is returning to positive growth, with the effect of the covid-19 pandemic fading," writes the IMF, after improving its growth forecast, which went from a recession of 0.7 per percent to positive growth of 0.1 percent this year.
According to the Fund, "the authorities' political perspective remains sound, and policymakers remain committed to their reform plan following the completion of the IMF-supported program."
Angola is expected to accelerate economic growth to 2.9 percent in 2022, which represents an upward revision from the 2.6 percent previously forecast by the Fund, and record an average long-term growth of around 4 percent, says the Fund, supporting the forecast "in the implementation of structural reforms".
Inflation, which is expected to reach nearly 26 percent this year, "is expected to gradually start to ease in 2022", while the public debt ratio, which last year was 135.1 percent, is expected to drop this year to 95,9 percent and to 78.9 percent in 2022, helped not only by the return to economic growth, but also by the appreciation of the kwanza during this year.
"The prudent policies of the Angolan authorities have contributed to strengthening stability and sustainability under the program despite difficult economic conditions; aided by the recent rise in oil prices, this policy discipline and commitment to reforms has also begun to improve the economy performance, putting Angola on the path of recovery from the multiple shocks and the multi-year recession that it suffered", concludes the IMF.
