Since The Banker published its last special report on Angola in June 2015, the country’s economic situation has deteriorated markedly. The subdued oil price environment has forced the government to seek an International Monetary Fund (IMF) bailout – which at the time of writing was under negotiation – in response to widening current account and fiscal imbalances.
Declining oil receipts are also hitting gross domestic product (GDP) growth, which is expected to fall to just 2.5% for 2016, down from 6.8% in 2013. This environment is contributing to a foreign exchange crisis, rising inflation and higher interest rates, all of which have constrained the ability of Angola’s nascent non-oil sector to cushion the economic blow.
