Angola: Economy now fifth largest in sub-Saharan Africa – Consultant

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Angola: Economy now fifth largest in sub-Saharan Africa – Consultant

9:29 CAT | 26 Feb 2020

Angola’s economy fell two places and was overtaken by Ethiopia and Kenya, and now ranks fifth on the list of the largest economies in sub-Saharan Africa, according to statistics and central bank data.

According to the March edition of the FocusEconomics report on this African region, Angola this year will have a GDP of $72 billion, which compares with Kenya’s $106 billion and Ethiopia’s estimated $121 billion, which are still far from Nigeria’s $535 billion and South Africa’s $363 billion.

The data, collected from national statistical institutes and central banks, and presented in the March report on sub-Saharan Africa, sent to customers and to which Lusa had access, are explained by the reduction in economic growth in the region’s second-largest oil producer, Angola since it entered recession five years ago, and by the increase of Ethiopia and Kenya in recent years.

Last year, according to FocusEconomics, Angola had already been overtaken by Kenya, which advanced its GDP to $96.7 billion, compared to Angola’s $85.8 billion.

“The Angolan economy seems to have remained trapped in recession in the last quarter of last year, after having contracted at the fastest pace in the year during the third quarter”.

“Activity in the oil sector seems to have fallen again, with the drop in domestic production being offset by the rise in prices at the international level,” the document said, which also noted that the fall in the value of the kwanza has damaged household spending.

“The first quarter of this year also shows a gloomy picture, with domestic production and international prices falling in January, suggesting that the oil sector has dragged global economic activity”.

The analysts reduced economic growth forecasts for this year by half the figure for last month, now anticipating an expansion of 0.2%, which will accelerate to 1.8% in 2021.

“The forecast was cut again in February in a context of falling international prices and reduced demand for black gold,” they said, noting, nevertheless, that the economy should come out of recession this year, supported by ongoing economic reforms and assistance from the IMF.

Source: Lusa