Angola Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Angola's economy is overwhelmingly driven by its oil sector. Oil production and its supporting activities contribute about 50% of GDP, more than 70% of government revenue, and more than 90% of the country's exports; Angola is an OPEC member and subject to its direction regarding oil production levels. Diamonds contribute an additional 5% to exports. Subsistence agriculture provides the main livelihood for most of the people, but half of the country's food is still imported.

 

Increased oil production supported growth averaging more than 17% per year from 2004 to 2008. A postwar reconstruction boom and resettlement of displaced persons led to high rates of growth in construction and agriculture as well. Some of the country's infrastructure is still damaged or undeveloped from the 27-year-long civil war (1975-2002). However, the government since 2005 has used billions of dollars in credit from China, Brazil, Portugal, Germany, Spain, and the EU to help rebuild Angola's public infrastructure. Land mines left from the war still mar the countryside, and as a result, the national military, international partners, and private Angolan firms all continue to remove them.

 

The global recession that started in 2008 stalled Angola’s economic growth and many construction projects stopped because Luanda accrued billions in arrears to foreign construction companies when government revenue fell. Lower prices for oil and diamonds also resulted in GDP falling 0.7% in 2016. Angola formally abandoned its currency peg in 2009 but reinstituted it in April 2016 and maintains an overvalued exchange rate. In late 2016, Angola lost the last of its correspondent relationships with foreign banks, further exacerbating hard currency problems. Since 2013 the central bank has consistently spent down reserves to defend the kwanza, gradually allowing a 40% depreciation since late 2014. Consumer inflation declined from 325% in 2000 to less than 9% in 2014, before rising again to above 30% from 2015-2017.

 

Continued low oil prices, the depreciation of the kwanza, and slower than expected growth in non-oil GDP have reduced growth prospects, although several major international oil companies remain in Angola. Corruption, especially in the extractive sectors, is a major long-term challenge that poses an additional threat to the economy.

Real GDP (purchasing power parity)

$203.71 billion (2020 est.)

$212.29 billion (2019 est.)

$213.62 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

-2.5% (2017 est.)

-2.6% (2016 est.)

0.9% (2015 est.)

Real GDP per capita

$6,200 (2020 est.)

$6,700 (2019 est.)

$6,900 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$97.261 billion (2019 est.)

Inflation rate (consumer prices)

17.2% (2019 est.)

20.3% (2018 est.)

32.1% (2017 est.)

Credit ratings

Fitch rating: CCC (2020)

Moody's rating: Caa1 (2020)

Standard & Poors rating: CCC+ (2020)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 10.2% (2011 est.)

industry: 61.4% (2011 est.)

services: 28.4% (2011 est.)

GDP - composition, by end use

household consumption: 80.6% (2017 est.)

government consumption: 15.6% (2017 est.)

investment in fixed capital: 10.3% (2017 est.)

investment in inventories: -1.2% (2017 est.)

exports of goods and services: 25.4% (2017 est.)

imports of goods and services: -30.7% (2017 est.)

Agricultural products

cassava, bananas, maize, sweet potatoes, pineapples, sugar cane, potatoes, citrus fruit, vegetables, cabbage

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

2.5% (2017 est.)

Labor force

12.51 million (2017 est.)

Labor force - by occupation

agriculture: 85%

industry: 15% (2015 est.)

industry and services: 15% (2003 est.)

Unemployment rate

6.6% (2016 est.)

Youth unemployment rate (ages 15-24)

total: 17.3%

male: 17.9%

female: 16.7% (2014 est.)

Population below poverty line

32.3% (2018 est.)

Gini Index coefficient - distribution of family income

51.3 (2018 est.)

Household income or consumption by percentage share

lowest 10%: 0.6%

highest 10%: 44.7% (2000)

Budget

revenues: 37.02 billion (2017 est.)

expenditures: 45.44 billion (2017 est.)

Budget surplus (+) or deficit (-)

-6.7% (of GDP) (2017 est.)

Public debt

65% of GDP (2017 est.)

75.3% of GDP (2016 est.)

Taxes and other revenues

29.3% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$1.254 billion (2017 est.)

-$4.834 billion (2016 est.)

Exports

$21 billion (2020 est.)

$35.18 billion (2019 est.)

$41.39 billion (2018 est.)

note: Data are in current year dollars and do not include illicit exports or re-exports.

Exports - partners

China 62%, India 10%, United Arab Emirates 4%, Portugal 3%, Spain 3% (2019)

Exports - commodities

crude petroleum, diamonds, natural gas, refined petroleum, ships (2019)

Imports

$15.12 billion (2020 est.) note: data are in current year dollars

$22.3 billion (2019 est.) note: data are in current year dollars

$25.89 billion (2018 est.) note: data are in current year dollars

Imports - partners

China 22%, Portugal 15%, Nigeria 6%, Belgium 6%, United States 5%, South Africa 5%, Brazil 5% (2019)

Imports - commodities

refined petroleum, scrap vessels, meat, rice, palm oil (2019)

Reserves of foreign exchange and gold

$17.29 billion (31 December 2017 est.)

$23.74 billion (31 December 2016 est.)

Debt - external

$42.08 billion (31 December 2017 est.)

$27.14 billion (31 December 2016 est.)

Exchange rates

kwanza (AOA) per US dollar -

172.6 (2017 est.)

163.656 (2016 est.)

163.656 (2015 est.)

120.061 (2014 est.)

98.303 (2013 est.)

NOTE: The information regarding Angola on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Angola 2022 information contained here. All suggestions for corrections of any errors about Angola 2022 should be addressed to the CIA or the source cited on each page.