Angola: Country risks falling to fifth largest economy in Sub-Saharan Africa

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Angola: Country risks falling to fifth largest economy in Sub-Saharan Africa

8:24 CAT | 12 Dec 2018

Photo: Lusa

Bloomberg Intelligence warned on Wednesday that further kwanza devaluations, following an agreement with the International Monetary Fund (IMF), could lead Angola to fall to fifth place in the list of the biggest economies in Sub-Saharan Africa.

Analysts from Bloomberg Intelligence pointed out that the IMF’s current previsions for Angola were based on 48.5% depreciation of the kwanza this year and 28% next year, compared to previous estimates of 10.1% and 7.3% respectively.

Nigeria and South Africa lead the list of the biggest economies included in the IMF’s World Economic Previsions in October, followed by Angola, Kenya and Ethiopia, with these two last countries expected to surpass Angola in the list if the depreciation of the kwanza continues, Bloomberg Intelligence said.

Angola, one of the world’s biggest oil producers, emerged from a civil war in 2002 and became a fast-growing economy, however output of oil has fallen dramatically in the past years.

The IMF recently said it had approved a three-year loan worth around $3.7 billion for Angola.

Source: Lusa