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 half of GDP and 90% of exports. Increased oil production supported 12% growth in 2004, 19% growth in 2005, and nearly 14% growth in 2006. 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 from China to rebuild Angola's public infrastructure, and several large-scale projects were completed in 2006. 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 about 13% in 2006, the stabilization policy has put pressure on international net liquidity. 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 and to reduce corruption. The government has made little progress on reforms recommended by the IMF, such as promoting greater transparency in government spending, and continues to be without a formal monitoring agreement with the institution. Corruption, especially in the extractive sectors, is a major challenge facing Angola.
Agriculture Products
bananas, sugarcane, coffee, sisal, corn, cotton, manioc (tapioca), tobacco, vegetables, plantains; livestock; forest products; fish
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
13.5% (2004)
Labor Force
6.444 million (2006 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)
Unemployment Rate
Extensive unemployment and underemployment affecting more than half the population (2001 est.)
Population Below Poverty Line
70% (2003 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $14.07 billion
Expenditures: $10.78 billion (2006 est.)
Public Debt
26.6% of GDP (2006 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
$8.599 billion (2006 est.)
Debt External
$10.66 billion (2006 est.)
Stock of Direct Foreign Investment at Home
$17.6 billion (2006 est.)
Stock of Direct Foreign Investment Abroad
$227 million (2006 est.)
Exchange Rates
kwanza per US dollar - 80.4 (2006), 88.6 (2005), 83.541 (2004), 74.606 (2003), 43.53 (2002)
