Luanda - The Angolan government has said it forecasts a 16 percent reduction in the inflation rate in 2025, compared to the accumulated inflation rate of 23.4% expected by the end of 2024, according to the draft State Budget for next economic year (OGE 2025).
According to the legal instrument, in the 2025 State Budget, valued at 34.63 trillion kwanzas, the Growth Domestic Product (GDP) is expected to increase to 4.1%, the non-oil sector 5.1% and the oil sector 1.6%, including gas production.
Growth in the Angolan economy is expected to remain slightly below the average growth forecast for the Southern African Development Community (SADC) (4.3%) and that expected for sub-Saharan Africa (4.2%).
It adds that this development in GDP will be based on acceleration in domestic demand, particularly through the continued appreciation of wages in the national economy to tackle the loss of household purchasing power and boost public investment, which is expected to grow by 2.24 percentage points of the GDP.
The draft 2025 State Budget proposal was prepared on the basis of an average oil price of USD 70 per barrel and average daily oil production of 1.098 million barrels, with average inflation projected at 19.29%.
The medium-term economic projections, drawn up as part of the Executive's fiscal strategy for the same period, indicate that the Angolan economy should grow in real terms at an average rate of 3.2% over the 2025-2030 horizon, sustained fundamentally by the prospects for growth in the non-oil sector at an average rate of 4.5% over the same period.
The oil sector will continue to be marked by oil production decline, constituting an important source of fiscal risk.
The baseline forecasts give the oil sector a negative growth outlook of 1.5%, in average terms, even though average daily production for the same period is estimated at over one million barrels/day, slightly higher than that forecast in the National Development Plan (PDN) 2023-2027.
State Budget is the programmatic instrument that sets the amount of revenue to be collected and defines the expenditure limits for the year, determines the sources of funding and establishes the criteria for its management, with the aim to meet collective needs and ensure the sustainability of the country's public finances.
As part of its implementation, the government proposes, among other things, measures to support investment in food security, restructuring and boosting the cereals and grains sector, strengthening agricultural mechanization, and fundamentally with regard to family agricultural production. ASS/VC/TED/AMP
