Angola: World Bank cuts economic growth to 1% in 2019

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Angola: World Bank cuts economic growth to 1% in 2019

8:01 CAT | 06 Jun 2019

The World Bank expects a decrease in Angola’s economic growth outlook for this year, from a forecast of 2.9% to only 1% this year, due to the evolution of the oil sector.

“Angola should emerge from three years of contraction, in 2019, with a recent growth in the non-oil sector reflecting the reforms in the business environment,” the analysts wrote in a report on the “World Economic Forecasts”, released on Tuesday in Washington, where they added that “however, a drop in oil production has led to lower growth than anticipated this year.”

Thus, analysts anticipate a GDP growth of 1% this year and 2.9% in 2020, when in January they predicted an economic expansion of 2.6% next year.

“Public debt vulnerabilities in the region remain a concern and higher interest charges partly reflect the changes in debt composition, in the sense of a higher cost of non-concessional financing,” the report said, which pointed to high indebtedness as one of the problems in the region’s main economies.

In the report, the World Bank economists cut the growth forecast of sub-Saharan Africa to 2.9% this year, highlighting concerns about increased public debt, a slowdown in key partners and financing difficulties.

The report anticipated a 3.3% growth in sub-Saharan Africa next year, “assuming that the investor sentiment will improve on some of the region’s major economies, that oil production will recover in large exporters and that robust growth in the region’s economies, which consume fewer resources, will be supported by a continuous strong agricultural production and sustained public investment.”

Source: Lusa