Angola: First Post-Financing Assessment Discussions-Press Release

After achieving macroeconomic stability amid a difficult environment in 2020, the recovery that began in 2021 continued through 2022, aided by high oil prices. President João Lourenço second term – achieved last year – is focused on boosting diversification and non-oil growth. However, Angola faces significant challenges in 2023, including a worsening outlook for oil prices, lower oil production, a highly uncertain external environment, and the need to unwind last year’s large fiscal loosening. The latter will be aided by the full completion of the fuel subsidy reform announced by the government on June 1, 2023. Angola’s capacity to repay the Fund is adequate though subject to high risks. In the event of an adverse scenario involving a prolonged oil price shock, repayment indicators would weaken but remain adequate.