Economic Overview

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Largest oil producer in Africa, Angola also has the third largest GDP in sub-Saharan Africa (IMF). Economic growth is prone to large fluctuations, depending on oil production and prices levels. After the recession induced by the fall in oil prices and in world demand, restrictions under the OPEC+ production agreement and the COVID-19 pandemic, economic growth started to recover. From an estimated 0.8% in 2021, GDP growth picked up to 2.9% in 2022, supported by higher oil prices, improved oil production, and resilient non-oil activity (IMF). According to IMF’s latest estimates, GDP growth is expected to further accelerate to 3.5% in 2023 and reach about 4% in the medium term, thanks to structural reforms supporting the non-oil sector.

In 2022, the Angolan economy continued to recover from the pandemic-induced crisis, supported by stronger agriculture and services sector output, and by faster expansion of the oil sector amid the fallout from the war in Ukraine (Focus Economics). Despite the end of the IMF-supported program, continued reforms supported the economy. Overall fiscal balance worsened from 3.8% GDP in 2021 to 1.7% GDP in 2022, following higher-than-budgeted capital expenditure and higher-than-expected fuel subsidy costs, and is expected to be negative in 2023 (-0.4%) (IMF). The 2023 budget envisions a resumption of fiscal adjustment. Benefitting from a stronger exchange rate, public debt continued to drop, from 86.4% GDP in 2021 to 56.6% GDP in 2022. It is expected to further reduce to 52.5% GDP in 2023 and 47.9% GDP in 2024 (IMF). Driven by lower global food prices, a stronger kwanza, and previous efforts by the central bank to tighten monetary policy, inflation decreased from 25.8% in 2021 to 21.7% in 2022, and it is forecast to further decline to 11.8% in 2023 and 9.9% in 2023 (IMF). The 2023 budget reflects the authorities’ commitment to prudent budget management and support to inclusive growth, increasing the allocation for health, education and fight against poverty. Among the many challenges faced by the country, strengthening debt sustainability, addressing the financial sector’s weaknesses, diversifying the economy, improving governance and developing human capital and infrastructure should be key priorities (IMF).

President Joao Lourenço initiated numerous reforms aimed at reducing the influence of the dos Santos family on the economy, improving the perception of the business climate and getting the country out of the crisis, but the social situation of Angola remains tensed. Inequalities and inflation are nourishing people's dissatisfaction. Only a third of the population has access to electricity. The income per capita has been gradually increasing, especially in the metropolitan regions, but poverty and unemployment rates remain high. According to the African Development Bank, the pandemic is likely to have exacerbated the official poverty incidence of 40.6%. Poverty is more dominant in rural areas (around 60%) than in urban areas (around 20%). The unemployment rate fell below 30% in Q4 2022, but youth unemployment remained above 50% (INE). According to the World Bank data (modelled ILO estimate) unemployment rate was at 8.5% of labour force in 2021. Violence in the region of Kasaï (Democratic Republic of Congo) provoked the arrival of more than 30,000 refugees in Angola.

Foreign Trade

Angola has considerably liberalised its trade scheme over the last few years. Trade represents around 60% of the country's GDP (World Bank, latest available data). The country is a member of SADC (Southern African Development Community) and ECCAS (Economic Community of Central African States), and signed the African Continental Free Trade Agreement in May 2019. Custom duties are relatively low (9.5% in average). The imports of certain products, such as pharmaceuticals and agricultural products, still require authorisations from the concerned official ministries. Angola has also adopted the SADC guidelines on biotechnology, which ban the import of biotechnological particles. Delays in customs clearance at the ports still remain a major problem.

Oil exports account for more than 95% of total exports. The country is also a major exporter of diamonds and is exporting liquefied natural gas to the American, European and Japanese markets; other exports include, coffee, sisal, and fish. Imports mainly involve machinery, vehicles, spare parts, medicines, food, textiles, and military goods. Angola's main trade partners are China (more than 60% of exports and 15% of imports), India, the European Union (Portugal, Spain) and the United States.

Thanks to its comfortable oil revenues, Angola historically records a large but volatile trade surplus that should continue in the coming years. In 2021, merchandise exports increased to USD 33.6 billion (from USD 20.9 billion in 2020), while imports increased to USD 11.8 billion (from USD 9.5 billion). Services exports slightly increased to USD 94 million (from USD 66 million in 2020), while imports rose to USD 7 billion (from USD 5.4 billion) (WTO). Thanks to economic recovery and higher oil prices, the trade balance soared to USD 21.8 billion in 2021, up from USD 11.4 billion in 2020 (World Bank).

COVID-19 Country Response

Travel restrictions

Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test and vaccines requirements is available on TravelDoc Infopage.
To find information about the current travel regulations, including health requirements, it is also advised to consult Travel Regulations Map provided and updated on a daily basis by IATA.

Import & export restrictions

A general overview of trade restrictions which were adopted by different countries during the COVID-19 pandemic is available on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.

Economic recovery plan

For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and macroeconomic) undertaken by the Angolan government, please consult the section dedicated to Angola in the IMF’s Policy Tracker platform.

Support plan for businesses

For an evaluation of impact of the Covid pandemic on SMEs and an inventory of country responses to foster SME resilience, refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.