Angola: Economic Outline

Economic Indicators

With an average economic growth of 20% before the crisis, Angola was one of the fastest growing economies of the world. The oil wealth is the main driving force of this sustained economic growth, since the oil sector contributes to 50% of GDP and 90% of the operating revenues. However, a dependence in this oil production has its limits. Considering the problems that the British company BP faced in 2011, the daily national production (1.5 million barrels) was much less than the annual forecast (1.7 millions, which means a drop of 13%). This decrease in oil production weakened the economic growth in 2011. Nevertheless, the rise in oil prices allowed to limit the loss and to compensate a part of the decrease in revenues. The foreign exchange reserves have also increased almost 25% in 2011, reaching about USD 21 billion.

Taking into account the revival of the oil production, which should regain its growing rhythm, the growth rate expected for 2012 should increase, the IMF estimates a growth of 10.8% The oil production will be much stronger due to the fact that the French operator Total was installed since the second semester of 2011 in a new offshore exploitation field.

After 17 years of civil war, the country has begun a genuine phase of economic reconstruction and expects to become in 2013 the first African oil-producing nation, surpassing Nigeria.

However, the country has to face many challenges, notably in terms of the fight against corruption, investments in the country's infrastructures and to achieve an economic sovereignty since it needs to repay its debt to foreign countries and financial institutions. The reconstruction of the country's infrastructures is taking place, the first section of a new airport in Luanda, with a capacity of receiving 25 million passengers per year, should open in 2012. The country is also strengthening its institutions and doing a revision of its fiscal system. Reforms aiming to improve the business environment are also been planned.

Even though the income per capita is increasing progressively, mainly in the metropolitan regions, life is still difficult for the majority of the Angolans affected by poverty and unemployment. According to the UNDP, 35% of Angolans suffer from malnutrition. In order to fight against this calamity, the country's budget for 2012 plans to double its spending in housing and health care.

Main Indicators	2009	2010	2011	2012 (e)	2013 (e)
GDP (billions USD)	75.49e	82.47	99.33e	108.96	117.28
GDP (Constant Prices, Annual % Change)	2.4	3.4e	3.7e	10.8	6.7
GDP per Capita (USD)	4,081e	4,329	5,061e	5,391	5,633
General Government Gross Debt (in % of GDP)	36.3	35.0e	29.9e	24.7	19.9
Inflation Rate (%)	13.7	14.5	15.0e	13.9	8.9
Current Account (billions USD)	-7.57e	7.30e	11.94e	7.94	6.70
Current Account (in % of GDP)	-10.0	8.9	12.0	5.7	-

Source: IMF - World Economic Outlook Database - Last Available Data.

Note: (e) Estimated Data

Monetary Indicators	2008	2009	2010
Foreign Debt (million USD)	15,132	16,715	-
Angolean New Kwanza (AON) - Average Annual Exchange Rate For 1 USD	75.03	79.33	91.91

Source: World Bank - Last Available Data.

Find out all the exchange rates daily on our service Currency convertor.

Main Sectors of Industry

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	-	-	-
Value Added (in % of GDP)	10.0	62.9	27.1
Value Added (Annual % Change)	12.0	5.6	-10.0

Source: World Bank - Last Available Data.

Learn more about Market Analyses about Angola on Globaltrade.net, the Directory for International Trade Service Providers.

The Active Population in Figures

	2010
Labor Force	7,977,000

Source: CIA - The world factbook

	2009	2010
Total activity rate	-	81.30%
Men activity rate	88.40%	-
Women activity rate	74.50%	-

Source: UN - United Nations

Indicator of Economic Freedom

Score:: 46.2/100
Position:: Controlled
World Rank:: 155/179
Regional Rank:: 39/45

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Country Risk

See the Country Risk Analysis Provided By Ducroire.

Indicator of Political Freedom

Ranking:: Not Free
Political Freedom:: 6/7
Civil Liberties:: 5/7

Map of freedom 2010
Source: Freedom House

Note: The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Indicator of Freedom of the Press

World Rank:: 132/179
Evolution:: 28 places down compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

Sources of General Economic Information

Main Online Newspapers and Portals: Angola News
Allafrica, Angola news
Afrol, News Angola

Useful Resources: Ministry of Finance

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