This year, the World Bank forecasts an acceleration of the Angolan economy by 2.8%, following a growth of 0.8% in 2023. However, this rebound does not come from where one might think.
"In Angola, growth is expected to accelerate from 0.8% in 2023 to 2.8% this year, with economic activity mainly based in the non-oil sector, while oil production is expected to drop to 2.5% in 2024 due to a lack of investment and the maturation of wells." This is the main conclusion contained in the newly published report by the World Bank titled: "Combating Inequality to Boost Growth and Reduce Poverty in Africa."
"Inflationary pressures are expected to persist until 2024, although they should be reduced by the end of the year," specifies the chief economist for Africa, Andrew Dabalen.
The document indicates that Angola's recovery is the fourth fastest, with a two percentage point increase, behind Niger (5.7%), Senegal (3.4%), and São Tomé and Príncipe, which increases this year's growth by 2.9 percentage points compared to 2023.
Faced with these challenges, the Angolan government might consider adopting measures to stimulate investments in the oil sector, while further diversifying the economy to reduce its dependence on oil. Experts suggest that improving the business environment, particularly through regulatory reform and increased infrastructure, could attract substantial foreign investment.
Moreover, to combat persistent inflation, stricter monetary policies may be necessary. According to some economists, an increase in interest rates could help stabilize the national currency and control inflation, while protecting the savings of citizens.
