Angola Economy Profile 2008

Economy - overview

Angola's high growth rate is driven by its oil sector, with record oil prices and rising petroleum production. 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 2007, 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)

$80.95 billion (2007 est.)

GDP (official exchange rate)

$61.04 billion (2007 est.)

GDP - real growth rate

16.3% (2007 est.)

GDP - per capita (PPP)

$6,500 (2007 est.)

GDP - composition by sector

agriculture: 9.6%
industry: 65.8%
services: 24.6% (2005 est.)

Population below poverty line

70% (2003 est.)

Household income or consumption by percentage share

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

Inflation rate (consumer prices)

12.5% (2007 est.)

Investment (gross fixed)

9.2% of GDP (2007 est.)

Labor force

6.573 million (2007 est.)

Labor force - by occupation

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

Unemployment rate

extensive unemployment and underemployment affecting more than half the population (2001 est.)

Budget

revenues: $18.58 billion
expenditures: $15.7 billion (2007 est.)

Public debt

14.7% of GDP (2007 est.)

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

24.4% (2007 est.)

Electricity - production

2.585 billion kWh (2005)

Electricity - consumption

2.201 billion kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

1.26 million bbl/day (2005 est.)

Oil - consumption

50,000 bbl/day (2005 est.)

Oil - imports

18,290 bbl/day (2004)

Oil - exports

1.021 million bbl/day (2004)

Oil - proved reserves

5.412 billion bbl (1 January 2006 est.)

Natural gas - production

767.3 million cu m (2005 est.)

Natural gas - consumption

767.3 million cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

44 billion cu m (1 January 2006 est.)

Current Account Balance

$13.64 billion (2007 est.)

Agriculture - products

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

Exports

$43.23 billion f.o.b. (2007 est.)

Exports - commodities

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

Exports - partners

US 38%, China 34.2%, Taiwan 5.8%, France 4.9%, Chile 4.1% (2006)

Imports

$11.41 billion f.o.b. (2007 est.)

Imports - commodities

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

Imports - partners

US 15.3%, Portugal 15%, South Korea 10.1%, China 8.8%, Brazil 8.2%, South Africa 6.7%, France 6.2% (2006)

Reserves of foreign exchange and gold

$12.29 billion (31 December 2007 est.)

Debt - external

$8.835 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$17.6 billion (2006 est.)

Stock of direct foreign investment - abroad

$227 million (2006 est.)

Economic aid - recipient

$441.8 million (2005)

Currency (code)

kwanza (AOA)

Exchange rates

kwanza per US dollar - 76.6 (2007), 80.4 (2006), 88.6 (2005), 83.541 (2004), 74.606 (2003)

Fiscal year

calendar year