Angola: GDP in Q2 shrinks for third straight quarter, down 7.4% on year

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Angola: GDP in Q2 shrinks for third straight quarter, down 7.4% on year

6:58 CAT | 17 Oct 2018

Angola’s economic recession shrank for a third consecutive quarter in the three months to June, with the year-on-year rate of decline of gross domestic product (GDP) accelerating to 7.4%, according to new data by the country’s National Statistics Institute (INE).

According to the INE, based on information from the department of national accounting and statistical coordination, the drop in GDP was driven by sectors such as fisheries (-10.0%), manufacturing (-8.8%), oil extraction and refining (-8.4%) and extraction of diamonds and other minerals (-6.1%).

The year-on-year drop in Angola’s GDP for the quarter is the third largest recorded by the INE since 2010, only exceeded by the fall of 11.33% in the fourth quarter of 2015 and the decrease of 7.55% in the third quarter of 2016.

It is also the third consecutive quarter of the decline of the Angolan economy, which remains in recession (at least two consecutive quarters in a break).

In the same bulletin, released late on Tuesday, the INE downgraded its previous estimate for GDP in the first quarter of 2018, saying that the year-on-year decline was 4.66% rather than 2.2% as previously stated, in August.

According to INE data, the third quarter of 2017 was the last one in which the economy in Angola had a positive year-on-year growth rate, of 2.79%.

Source: Lusa