Economy Overview
Angola's high growth rate is driven by its oil sector, which has taken advantage of high international oil prices. 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 2008, 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
14.3% (2008 est.)country comparison to the world: 1
Labor Force
7.569 million (2008 est.)country comparison to the world: 58
Electricity production
3.722 billion kWh (2007 est.)country comparison to the world: 120
Electricity Consumption
3.173 billion kWh (2007 est.)country comparison to the world: 125
Electricity Exports
0 kWh (2008 est.)
Electricity Imports
0 kWh (2008 est.)
Population Below Poverty Line
40.5% (2006 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $28.99 billion
Expenditures: $21.44 billion (2008 est.)
Public Debt
15.5% of GDP (2008 est.)country comparison to the world: 103 12% of GDP (2007 est.)
Central Bank Discount Rate
19.57% (31 December 2008)country comparison to the world: 8 19.57% (31 December 2007)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$7.893 billion (31 December 2008)country comparison to the world: 76 $1.166 billion (31 December 2007)
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
$18.36 billion (31 December 2008 est.)country comparison to the world: 54 $11.2 billion (31 December 2007 est.)
Debt External
$14.09 billion (31 December 2008 est.)country comparison to the world: 78 $8.357 billion (31 December 2007 est.)
Stock of Direct Foreign Investment at Home
$16.36 billion (31 December 2008 est.)country comparison to the world: 68 $14.51 billion (31 December 2007 est.)
Stock of Direct Foreign Investment Abroad
$2.477 billion (31 December 2008 est.)country comparison to the world: 62
Exchange Rates
kwanza (AOA) per US dollar - 75.023 (2008 est.), 76.6 (2007), 80.4 (2006), 88.6 (2005), 83.541 (2004)
