Economic overview Angola, in 36 editions.

Subsistence agriculture provides the main livelihood for 80-90% 80 to 90% of the population, but accounts for only 10-20% less than 15% of GDP. Oil production is the most lucrative sector of the economy, contributing about 50% to GDP. In recent years, however, the impact of fighting an internal war has severely affected the economy nonoil economy, and food has to be imported. For the long run, Angola has the advantage of rich natural resources, notably gold, diamonds, and arable land. To realize its economic potential Angola not only must secure domestic peace but also must reform government policies that have led to distortions and imbalances throughout the economy.

Subsistence agriculture provides the main livelihood for 80 to 90% 80-90% of the
population, but accounts for less than 15% of GDP. Oil production is the most lucrative sector of vital
to the economy, contributing about 50% 60% to GDP. In recent years, however, the impact of fighting an a bitter
internal war has severely affected the nonoil economy, and food has to be
imported. For the long run, Angola has the advantage of rich natural resources,
resources in addition to oil, notably gold, diamonds, and arable land. To
realize its economic potential Angola not only must secure domestic peace
but also must reform government policies that have led to distortions and
imbalances throughout the economy.

Subsistence agriculture provides the main livelihood for 80-90% of the
population, but accounts for less than 15% of GDP. Oil production is vital
to the economy, contributing about 60% to GDP. In recent years, a bitter
Bitter internal war has fighting
continues to severely affected affect the nonoil economy, and food has needs to be
imported. For the long run, Angola has the advantage of rich natural
resources in addition to oil, notably gold, diamonds, and arable land. To
realize its economic potential Angola not only must secure domestic peace
but also must reform government policies that have led to distortions and
imbalances throughout the economy.

Subsistence agriculture provides the main livelihood for 80-90% of the
population, population but accounts for less than 15% of GDP. Oil production is vital
vital to the economy, contributing about 60% to GDP. Bitter internal fighting
fighting continues to severely affect the nonoil economy, and food needs to must be
imported. For In 1993, production fell by an estimated 22.6%, mainly
because of the long run, Angola has capture by insurgents of the advantage oil town of Soyo and
diamond-producing areas in northeastern Angola. Angola has rich natural
natural resources in addition to oil, - notably gold, diamonds, and arable land. To
realize its economic potential Angola not only must secure domestic peace land, in
addition to large oil depoaits - but also must will need to end the war and
reform government policies that have led if it is to distortions and
imbalances throughout the economy. achieve its potential.

Subsistence agriculture provides the main livelihood for 80-90%
80%-90% of the
population but accounts for less than 15% of GDP. Oil
production is
vital to the economy, contributing about 60% to GDP. Bitter internal
Despite the signing of a peace accord in November 1994 between the
Angola government and the UNITA insurgents, sporadic fighting
continues and many farmers remain reluctant to severely affect return to their fields.
As a result, much of the economy, and country's food requirements must still be
imported. In 1993, production fell by an estimated 22.6%, mainly
because of the capture by insurgents of the oil town of Soyo and
diamond-producing areas in northeastern Angola. Angola has rich
natural resources - notably gold, diamonds,
and arable land, in
addition to large oil depoaits deposits - but will need to end
observe the war cease-fire, implement the peace agreement, and
reform
government policies if it is to achieve its potential.

Angola is an economy in disarray. Despite its
abundant natural resources, output per capita is among the world's
lowest. Subsistence agriculture provides the main livelihood for
80%-90% of the population but accounts for less than 15% of GDP. Oil
production is and the supporting activities are vital to the economy,
contributing about 60% 50% to GDP.
Despite the signing of a peace accord
in November 1994 between the
Angola government Government and the UNITA
insurgents, sporadic fighting
continues and many farmers remain
reluctant to return to their fields.
As a result, much of the
country's food requirements must still be
imported. Angola has To take advantage of its rich natural
resources - notably gold, diamonds, extensive forests, Atlantic
fisheries, and arable land, in addition to its large oil deposits - but
Angola will need to
observe the cease-fire, implement the peace
agreement, and reform
government policies if it is to achieve its potential. policies.

Angola is an economy in disarray. Despite its
abundant natural resources, output per capita is among the world's
lowest. Subsistence agriculture provides the main livelihood for
80%-90% of the population but accounts for less than 15% about 12% of GDP. Oil
production and the supporting activities are vital to the economy,
contributing about 50% to GDP. Despite Notwithstanding the signing of a peace accord
accord in November 1994 between the Angola Government and the UNITA
insurgents, 1994, sporadic fighting continues violence continues, millions of land
mines remain, and many farmers remain
are reluctant to return to their
fields. As a result, much of the
country's food must still be
imported. To take advantage of its rich
resources - notably gold,
diamonds, extensive forests, Atlantic
fisheries, and arable land, in addition to its and
large oil deposits -
Angola will need to observe the cease-fire,
implement the peace
agreement, and reform government policies. Despite
the high inflation and political difficulties, total output grew an
estimated 9% in 1996, largely due to increased oil production.

Angola is an economy in disarray. disarray because of more
than 20 years of nearly continuous warfare. Despite its
abundant
natural resources, output per capita is among the world's
lowest.
Subsistence agriculture provides the main livelihood for
80%-90% 85% of the population but accounts for about 12% of GDP. Oil
population. Oil production and the supporting activities are vital to
the economy,
contributing about 50% to GDP. Notwithstanding the
signing of a peace
accord in November 1994, sporadic violence
continues, millions of land
mines remain, and many farmers are
reluctant to return to their
fields. As a result, much of the
country's food must still be
imported. To take advantage of its rich resources - notably gold,
resources-gold, diamonds, extensive forests, Atlantic fisheries,
arable land, and
large oil deposits - Angola deposits-Angola will need to observe the cease-fire,
implement the
peace agreement, agreement and reform government policies. Despite
the high
inflation and political difficulties, total output grew an
estimated
9% in 1996, largely due to increased oil production. production and higher oil
prices.

Angola is an economy in disarray because of more
more than 20 years of nearly continuous warfare. Despite its abundant
abundant natural resources, output per capita is among the world's lowest.
lowest. Subsistence agriculture provides the main livelihood for 85%
of the
population. Oil production and the supporting activities are
vital to
the economy, contributing about 50% 45% to GDP. Notwithstanding the
the signing of a peace accord in November 1994, sporadic violence
continues, millions of land mines remain, and many farmers are
reluctant to return to their fields. As a result, much of the
country's food must still be imported. To take advantage of its rich
resources-gold, resources--gold, diamonds, extensive forests, Atlantic fisheries,
arable land, and large oil deposits-Angola deposits--Angola will need to implement the
the peace agreement and reform government policies. Despite the high
inflation and political difficulties, total output grew an estimated The increase in
9% the pace of civil warfare in 1996, largely due to increased oil production and higher oil late 1998 dims economic prospects for
prices. 1999 especially if the oil sector were to be damaged.

Angola is an economy in disarray because of
more than 20 years a quarter century of nearly continuous warfare. Despite its
abundant natural resources, output per capita is among the world's
lowest. Subsistence agriculture provides the main livelihood for 85%
of the population. Oil production and the supporting activities are
vital to the economy, contributing about 45% to GDP. GDP and 90% of exports. Notwithstanding
the signing of a peace accord in November 1994, sporadic violence
continues, millions of land mines remain, and many farmers are
reluctant to return to their fields. As a result, much of the
country's food must still be imported. To take advantage of its rich
resources--gold, resources - gold, diamonds, extensive forests, Atlantic fisheries,
arable land, and large oil deposits--Angola deposits - Angola will need to implement
the peace agreement and reform government policies. The Despite the increase in
the pace of civil warfare in late 1998 dims economic 1998, the economy grew by an estimated 4% in 1999. The government introduced new currency denominations in 1999, including a 1 and 5 kwanza note. Expanded oil production brightens prospects for
1999 especially if 2000, but internal strife discourages investment outside of the oil sector were to be damaged. petroleum sector.

Angola is an economy in disarray because of a quarter century of nearly continuous warfare. Despite its abundant natural resources, output per capita is among the world's lowest. Subsistence agriculture provides the main livelihood for 85% of the population. Oil production and the supporting activities are vital to the economy, contributing about 45% to GDP and 90% of exports. Notwithstanding the signing of a peace accord in November 1994, violence Violence continues, millions of land mines remain, and many farmers are reluctant to return to their fields. As a result, much of the country's food must still be imported. To fully take advantage of its rich resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to implement the peace agreement end its conflict and reform continue reforming government policies. Despite the increase in the pace of civil warfare in late 1998, the economy grew by an estimated 4% 5% in 1999. 2000. The government introduced new currency denominations in 1999, including a 1 and 5 kwanza note. Expanded oil production brightens prospects for 2000, but internal notes. Internal strife discourages investment outside of the petroleum sector. sector, which is producing roughly 800,000 barrels of oil per day. Angola has entered into a Staff Monitored Program (SMP) with the IMF. Continued growth depends on sharp cuts in inflation, further economic reform, and a lessening of fighting.

Angola is an economy in disarray because of a quarter century of nearly continuous warfare. Despite its abundant natural resources, output per capita is among the world's lowest. Subsistence agriculture provides the main livelihood for 85% of the population. Oil production and the supporting activities are vital to the economy, contributing about 45% to GDP and 90% of exports. Violence continues, millions of land mines remain, and many farmers are reluctant to return to their fields. As a result, much of the country's food must still be imported. To fully take advantage of its rich natural resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to end its conflict and continue reforming government policies. Despite the increase in the pace of civil warfare in late 1998, the economy grew by an estimated 5% in 2000. The government introduced new currency denominations in 1999, including 1 and 5 kwanza notes. Internal strife discourages investment outside of the petroleum sector, which is producing roughly 800,000 barrels of oil per day. While Angola has entered into a Staff Monitored Program (SMP) with made progress in bringing inflation down further, from over 300% in 2000 to about 110% in 2001, the IMF. Continued growth depends government has failed to make sufficient progress on sharp cuts in inflation, further economic reform, reforms recommended by the IMF, such as increasing foreign exchange reserves and a lessening of fighting. promoting greater transparency in government spending. Angola's GDP could be among the world's fastest growing in 2002 if oil production from the Girassol field, which began production in December 2001, reaches 200,000 barrels per day as expected.

Angola is has been an economy in disarray because of a quarter century of nearly continuous warfare. An apparently durable peace was established after the death of rebel leader Jonas SAVIMBI on February 22, 2002, but consequences from the conflict continue including the impact of wide-spread land mines. Subsistence agriculture provides the main livelihood for 85% of the population. Oil production and the supporting activities are vital to the economy, contributing about 45% to GDP and 90% more than half of exports. Violence continues, millions of land mines remain, and many farmers are reluctant to return to their fields. As a result, much Much of the country's food must still be imported. To fully take advantage of its rich natural resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to end its conflict and continue reforming government policies. Internal strife discourages investment outside of the petroleum sector, which is producing roughly 800,000 barrels of oil per day. While Angola made progress in bringing inflation down further, from over 300% 325% in 2000 to about 110% 106% in 2001, 2002, the government has failed to make sufficient progress on reforms recommended by the IMF, IMF such as increasing foreign exchange reserves and promoting greater transparency in government spending. Angola's GDP could be among the world's fastest growing in 2002 if Increased oil production from the Girassol field, which began production should bring about 6% GDP growth in December 2001, reaches 200,000 barrels per day as expected. 2003.

Angola has been an economy in disarray because of a quarter century of nearly continuous warfare. An apparently durable peace was established after the death of rebel leader Jonas SAVIMBI on February 22, 2002, but consequences from the conflict continue including the impact of wide-spread land mines. Subsistence agriculture provides the main livelihood for 85% of the population. Oil production and the supporting activities are vital to the economy, contributing about 45% to GDP and more than half of exports. Much of the country's food must still be imported. To fully take advantage of its rich natural resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to continue reforming government policies. policies and to reduce corruption. While Angola made progress in bringing inflation down further, from 325% in 2000 to about 106% in 2002, the government has failed to make sufficient progress on reforms recommended by the IMF such as increasing foreign exchange reserves and promoting greater transparency in government spending. Increased oil production should bring about 6% supported 7% GDP growth in 2003.

Angola has been an economy in disarray because of a quarter century of nearly continuous warfare. An apparently durable peace was established after the death of rebel leader Jonas SAVIMBI on in February 22, 2002, but consequences from the conflict continue including the impact of wide-spread widespread land mines. Subsistence agriculture provides the main livelihood for 85% of the population. Oil production and the supporting activities are vital to the economy, contributing about 45% to GDP and more than half of exports. Much of the country's food must still be imported. To fully take advantage of its rich natural resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to continue reforming government policies and to reduce corruption. While Angola made progress in bringing inflation down further, further lowering inflation, from 325% in 2000 to about 106% in 2002, the government has failed to make sufficient progress on reforms recommended by the IMF such as increasing foreign exchange reserves and promoting greater transparency in government spending. Increased oil production supported 7% GDP growth in 2003. 2003 and 12% growth in 2004.

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 and 2004, 19% growth in 2005. 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 half most of the population, 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 are scheduled for completion by 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, a circulation. This policy that was became more sustainable in 2005 because of strong oil export earnings, and earnings; it has significantly reduced inflation. Consumer Although consumer inflation declined from 325% in 2000 to about 18% 13% in 2005, but 2006, the stabilization policy places 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 continue reforming implement government policies reforms and to reduce corruption. The government has made sufficient little progress on reforms recommended by the IMF IMF, such as promoting greater transparency in government spending but 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.

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% 85% of exports. GDP. Increased oil production supported 12% growth in 2004, 19% growth in 2005, and nearly 14% growth in 2006. 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 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 about under 13% in 2006, 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 reforms, increase transparency, 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 rejected a formal monitoring agreement with the institution. IMF monitored program, although it continues Article IV consultations and ad hoc cooperation. Corruption, especially in the extractive sectors, is a and the negative effects of large inflows of foreign exchange, are major challenge challenges facing Angola.

Angola's high growth rate is driven by its oil sector, with record which has taken advantage of high international oil prices and rising petroleum production. 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 2007, 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.

Angola's high growth rate is in recent years was driven by its oil sector, which has taken advantage of high international oil prices. prices for its oil. 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 (bbl/day), somewhat less than the 2-2.5 million bbl/day Angola's government had wanted. Oil production and its supporting activities contribute about 85% of GDP. Diamond exports contribute an additional 5%. 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 15% per year from 2004 to 2007. 2008. 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 Land mines left from the war still mar the countryside 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 Since 2005, the government started using a $2 billion line has used billions of credit, since increased to $7 billion, from China to rebuild Angola's public infrastructure, and several large-scale projects were completed dollars in 2006. Angola also has large credit lines from China, Brazil, Portugal, Germany, Spain, and the EU. EU to rebuild Angola's public infrastructure. The central bank in 2003 implemented an exchange rate stabilization program using foreign exchange reserves global recession temporarily stalled economic growth. Lower prices for oil and diamonds during the global recession led to buy kwanzas out of circulation. This policy became more sustainable a contraction in 2005 GDP in 2009, and many construction projects stopped because Luanda accrued $9 billion in arrears to foreign construction companies when government revenue fell in 2008 and 2009. Angola abandoned its currency peg in 2009, and in November 2009 signed onto an IMF Stand-By Arrangement loan of strong oil export earnings; it has significantly reduced inflation. $1.4 billion to rebuild international reserves. Although consumer inflation declined from 325% in 2000 to under 13% 14% in 2008, the stabilization policy 2010, Luanda 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 been unable to implement government reforms, increase transparency, and reduce corruption. inflation below 10%. The government has rejected a formal IMF monitored program, although it continues Article IV consultations and ad hoc cooperation. Angolan kwanza depreciated again in mid 2010, which, along with higher oil prices, should boost economic growth in all sectors. Corruption, especially in the extractive sectors, and the negative effects of large inflows of foreign exchange, are also is a major challenges facing Angola. challenge.

Angola's high growth rate in recent years was driven by high international prices for its oil. Angola became a member of OPEC in late 2006 and in late 2007 was its current assigned a production quota of 1.9 1.65 million barrels a day (bbl/day), somewhat less than the 2-2.5 million bbl/day Angola's government had wanted. (bbl/day). Oil production and its supporting activities contribute about 85% of GDP. Diamond exports contribute an additional 5%. 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 15% 17% per year from 2004 to 2008. 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. Land mines left from the war still mar the countryside, even though peace was established after the death of rebel leader Jonas SAVIMBI in February 2002. Since 2005, the government has used billions of dollars in credit lines from China, Brazil, Portugal, Germany, Spain, and the EU to rebuild Angola's public infrastructure. The global recession that started in 2008 temporarily stalled economic growth. Lower prices for oil and diamonds during the global recession led to a contraction in slowed GDP growth to 2.4% in 2009, and many construction projects stopped because Luanda accrued $9 billion in arrears to foreign construction companies when government revenue fell in 2008 and 2009. Angola abandoned its currency peg in 2009, and in November 2009 signed onto an IMF Stand-By Arrangement loan of $1.4 billion to rebuild international reserves. Although consumer Consumer inflation declined from 325% in 2000 to under 14% in 2010, Luanda has been unable to reduce inflation below 10%. The Angolan kwanza depreciated again about 10% in mid 2010, which, along with higher 2012. Higher oil prices, should boost economic growth prices have helped Angola turn a budget deficit of 8.6% of GDP in all sectors. 2009 into an surplus of 12% of GDP in 2012. Corruption, especially in the extractive sectors, also is a major challenge.

Angola's high growth rate in recent years was economy is overwhelmingly driven by high international prices for its oil. Angola became a member of OPEC in late 2006 and its current assigned a production quota of 1.65 million barrels a day (bbl/day). oil sector. Oil production and its supporting activities contribute about 85% 50% of GDP. Diamond exports GDP, more than 70% of government revenue, and more than 90% of the country's exports. Diamonds contribute an additional 5%. 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 has led to high rates of growth in construction and agriculture as well. Much Some of the country's infrastructure is still damaged or undeveloped from the 27-year-long civil war. Land mines left from the war still mar the countryside, even though peace was established after the death of rebel leader Jonas SAVIMBI in February 2002. Since 2005, However, the government since 2005 has used billions of dollars in credit lines 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 temporarily stalled economic growth. Lower In particular, lower prices for oil and diamonds during the global recession slowed GDP growth to 2.4% in 2009, and many construction projects stopped because Luanda accrued $9 billion in arrears to foreign construction companies when government revenue fell in 2008 and 2009. Angola formally abandoned its currency peg in 2009, and in November 2009 signed onto an IMF Stand-By Arrangement loan of $1.4 billion to rebuild international reserves. Consumer inflation declined from 325% in 2000 to about 10% less than 9% in 2012. Higher 2014. Falling oil prices and slower than expected growth in non-oil GDP have helped reduced growth prospects for 2015. Angola turn has responded by reducing government subsidies and by proposing import quotas and a budget deficit of 8.6% of GDP in 2009 into an surplus of 12% of GDP in 2012. more restrictive licensing regime. Corruption, especially in the extractive sectors, also is a major long-term challenge.

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. 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 has 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. However, the government since 2005 has used billions of dollars in credit lines 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. In particular, lower prices for oil and diamonds during the global recession slowed GDP growth to 2.4% in 2009, and many construction projects stopped because Luanda accrued $9 billion in arrears to foreign construction companies when government revenue fell in 2008 and 2009. fell. Angola formally abandoned its currency peg in 2009, and in November 2009 signed onto an IMF Stand-By Arrangement loan of $1.4 billion to rebuild international reserves. Consumer inflation declined from 325% in 2000 to less than 9% in 2014. 2014, before rising again in 2015-16.
Falling oil prices prices, the depreciation of the kwanza, and slower than expected growth in non-oil GDP have reduced growth prospects for 2015. Angola has responded by reducing government subsidies and by proposing import quotas and a more restrictive licensing regime. prospects. Corruption, especially in the extractive sectors, is a major long-term challenge. challenge that poses an additional threat to the economy. Government spending in the run-up to the 2017 elections is likely to strain Luanda’s budget.

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. 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 has 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. 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. In particular, lower prices for oil and diamonds slowed GDP growth to 2.4% in 2009, and many construction projects stopped because Luanda accrued $9 billion 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, and in November 2009 signed onto but reinstituted it in April 2016 and maintains an IMF Stand-By Arrangement loan overvalued exchange rate. In late 2016, Angola lost the last of $1.4 billion its correspondent relationships with foreign banks, further exacerbating hard currency problems. Since 2013 the central bank has consistently spent down reserves to rebuild international reserves. 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 in 2015-16.
Falling 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. 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. Government spending in the run-up to the 2017 elections is likely to strain Luanda’s budget.

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.