Angola Economy Profile 2009

Economy - overview

Angola's high growth rate is driven by its oil sector, which has taken advantage of high international oil prices. Oil production and its supporting activities contribute about 85% of GDP. Increased oil production supported growth averaging more than 15% per year from 2004 to 2007. A postwar reconstruction boom and resettlement of displaced persons has led to high rates of growth in construction and agriculture as well. Much of the country's infrastructure is still damaged or undeveloped from the 27-year-long civil war. Remnants of the conflict such as widespread land mines still mar the countryside even though an apparently durable peace was established after the death of rebel leader Jonas SAVIMBI in February 2002. Subsistence agriculture provides the main livelihood for most of the people, but half of the country's food must still be imported. In 2005, the government started using a $2 billion line of credit, since increased to $7 billion, from China to rebuild Angola's public infrastructure, and several large-scale projects were completed in 2006. Angola also has large credit lines from Brazil, Portugal, Germany, Spain, and the EU. The central bank in 2003 implemented an exchange rate stabilization program using foreign exchange reserves to buy kwanzas out of circulation. This policy became more sustainable in 2005 because of strong oil export earnings; it has significantly reduced inflation. Although consumer inflation declined from 325% in 2000 to under 13% in 2008, the stabilization policy has put pressure on international net liquidity. Angola became a member of OPEC in late 2006 and in late 2007 was assigned a production quota of 1.9 million barrels a day, somewhat less than the 2-2.5 million bbl Angola's government had wanted. To fully take advantage of its rich national resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to implement government reforms, increase transparency, and reduce corruption. The government has rejected a formal IMF monitored program, although it continues Article IV consultations and ad hoc cooperation. Corruption, especially in the extractive sectors, and the negative effects of large inflows of foreign exchange, are major challenges facing Angola.

GDP (purchasing power parity)

$110.3 billion (2008 est.)
$97.4 billion (2007 est.)
$83.46 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$83.38 billion (2008 est.)

GDP - real growth rate

13.2% (2008 est.)
16.7% (2007 est.)
19.6% (2006 est.)

GDP - per capita (PPP)

$8,800 (2008 est.)
$7,900 (2007 est.)
$7,000 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 9.2%
industry: 65.8%
services: 24.6% (2008 est.)

Population below poverty line

40.5% (2006 est.)

Labor force

7.569 million (2008 est.)

Labor force - by occupation

agriculture: 85%
industry and services: 15% (2003 est.)

Unemployment rate

NA

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Investment (gross fixed)

9% of GDP (2008 est.)

Budget

revenues: $28.99 billion
expenditures: $21.44 billion (2008 est.)

Public debt

8.7% of GDP (2008 est.)
12% of GDP (2007 est.)

Inflation rate (consumer prices)

12% (2008 est.)
12.2% (2007 est.)

Central bank discount rate

19.57% (31 December 2008)
19.57% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
17.7% (31 December 2007)

Stock of money

$8.446 billion (31 December 2008)
$4.153 billion (31 December 2007)

Stock of quasi money

$10.41 billion (31 December 2008)
$7.216 billion (31 December 2007)

Stock of domestic credit

$7.893 billion (31 December 2008)
$1.166 billion (31 December 2007)

Industries

petroleum; diamonds, iron ore, phosphates, feldspar, bauxite, uranium, and gold; cement; basic metal products; fish processing; food processing, brewing, tobacco products, sugar; textiles; ship repair

Industrial production growth rate

14.3% (2008 est.)

Electricity - production

3.513 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 36.4%
hydro: 63.6%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

3.084 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

1.91 million bbl/day (2008 est.)

Oil - consumption

55,640 bbl/day (2006 est.)

Oil - imports

19,550 bbl/day (2005)

Oil - exports

1.23 million bbl/day (2005)

Oil - proved reserves

9 billion bbl (1 January 2008 est.)

Natural gas - production

680 million cu m (2006 est.)

Natural gas - consumption

680 million cu m (2006 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

269.8 billion cu m (1 January 2008 est.)

Current Account Balance

$17.84 billion (2008 est.)
$9.402 billion (2007 est.)

Agriculture - products

bananas, sugarcane, coffee, sisal, corn, cotton, manioc (tapioca), tobacco, vegetables, plantains; livestock; forest products; fish

Exports

$67.2 billion (2008 est.)
$44.4 billion (2007 est.)

Exports - commodities

crude oil, diamonds, refined petroleum products, coffee, sisal, fish and fish products, timber, cotton

Exports - partners

China 32.7%, US 26.7%, South Africa 9.6%, France 5.5% (2008)

Imports

$17.08 billion (2008 est.)
$13.66 billion (2007 est.)

Imports - commodities

machinery and electrical equipment, vehicles and spare parts; medicines, food, textiles, military goods

Imports - partners

Portugal 19.3%, China 14.7%, US 12.3%, Brazil 8.3%, South Africa 5.4%, France 4.3% (2008)

Reserves of foreign exchange and gold

$18.38 billion (31 December 2008 est.)
$11.2 billion (31 December 2007 est.)

Debt - external

$7.617 billion (31 December 2008 est.)
$8.357 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$16.36 billion (31 December 2008 est.)
$14.51 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$227 million (2006 est.)

Economic aid - recipient

$441.8 million (2005)

Currency (code)

kwanza (AOA)

Currency (code)

AOA

Exchange rates

kwanza (AOA) per US dollar - 75.023 (2008 est.), 76.6 (2007), 80.4 (2006), 88.6 (2005), 83.541 (2004)

Fiscal year

calendar year