Angola: World Bank revises growth down to 2.8% this year
The World Bank revised downwards its growth forecast for Angola for this year on Tuesday, now estimating an expansion of 2.8%, 0.5 points lower than in its June report.
According to the Global Economic Forecasts, released today in Washington, Angola is expected to have grown 3.1% in 2022, rebounding from 0.7% in 2021 and accelerating after five years of recession, but will see its growth slow this year.
“A more stable oil production and level of revenues should sustain activity in the non-oil economy and help improve the fiscal position, but lower oil prices, together with fiscal consolidation measures to reduce public debt, are expected to weigh on public expenditure and restrict growth,” reads the report released today in Washington.
The document forecasts growth of 5% in sub-Saharan Africa this year and next year, slightly below the June forecast, the economists said, warning that “the external environment is likely to remain challenging for some countries, with further declines in several commodity prices, which should hurt revenues and exports.”
Many countries, they add, “are likely to continue to face high prices for fertiliser and fuel imports, although below the peak recorded last year.”
Regionally, sub-Saharan Africa is expected to have grown 3.4% last year, 0.3 percentage points below the June forecast, due to lower growth forecasts “in more than 60% of countries” due to the slowdown in the global economy and tightening financial conditions, together with rising inflation, which undermined already fragile recoveries and amplified domestic vulnerabilities,” the World Bank concluded.