Angola

The 2026 Article IV Consultation with Angola discusses that a significant decline in oil production weakened fiscal and external positions. Overall growth held up in 2025, partly supported by public spending. Inflation eased from its peak, partly due to tight monetary policy, but remained at double digits. Despite a pickup in non-oil economic growth in recent years, non-oil revenues remained constrained while oil revenues declined sharply. Angola’s access to international markets has improved but elevated fiscal financing needs continued to crowd out social spending and private credit while further weakening the external position. The medium-term outlook remains subdued reflecting a structural decline in oil revenues, with economic growth depending on the success of diversification efforts. The exchange rate should serve as a key shock absorber, while monetary policy should focus on sustaining the disinflationary trend. Structural reforms to strengthen governance, improve the business climate, and enhance financial stability and inclusion are needed to support economic diversification.