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.
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
23.9% (2007 est.)
Labor Force
7.148 million (2007 est.)
Electricity production
3.513 billion kWh (2006 est.)
Electricity Consumption
3.084 billion kWh (2006 est.)
Electricity Exports
0 kWh (2007 est.)
Electricity Imports
0 kWh (2007 est.)
Unemployment Rate
Extensive unemployment and underemployment affecting more than half the population (2001 est.)
Population Below Poverty Line
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $20.18 billion
Expenditures: $15.53 billion (2007 est.)
Public Debt
12% of GDP (2007 est.)
Central Bank Discount Rate
19.57% (31 December 2007)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$1.385 billion (31 December 2007)
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
$11.2 billion (31 December 2007 est.)
Debt External
$8.357 billion (31 December 2007 est.)
Stock of Direct Foreign Investment at Home
$17.23 billion (2007 est.)
Stock of Direct Foreign Investment Abroad
$227 million (2006 est.)
Exchange Rates
kwanza (AOA) per US dollar - 76.6 (2007), 80.4 (2006), 88.6 (2005), 83.541 (2004), 74.606 (2003)
