Minister of Economy and Planning for Angola, H.E. Mário Caetano João, has announced that the country’s economy is expected to grow by an average of over 3.6% between 2023 and 2027, with the oil sector being the primary driver.
Oil sector growth during the forecast period is expected to average 1%, non-oil growth is set to average 4.6%.
The announcement comes despite the projection that the country’s economic growth in 2023 will fall below the projected population growth of 3.1%, primarily due to decreased oil production and reduced fiscal impulse. However, Angola’s recent oil and gas discoveries are expected to attract more investment into the country’s oil sector.
Over the past five years, economic reforms in Angola have improved macroeconomic management and public sector governance, including a more flexible exchange rate regime, central bank autonomy, favorable monetary policies, and fiscal consolidation.
Nevertheless, the World Bank has advised that Angola will need strong political commitment to transform and diversify its state-led, oil-funded economy to transform it towards a more sustainable, inclusive, and private sector-led model. The country’s premier energy event, Angola Oil & Gas (AOG), organized by Energy Capital & Power, will provide a platform for discussions on Angola’s economic outlook, oil demand and supply trends, and diversification efforts.
