Luanda – Angola’s Public debt went from 34.3 billion kwanzas in December 2022 to 53.1 billion kwanzas in December 2023, largely due to the depreciation of the country’s currency, the minister of state for economic coordination, José de Lima Massano, said Tuesday in Luanda.
The minister made the statement during the macroeconomic data on the country's public finances at the opening of the 3rd edition of the national economic conference "Angola Economic Outlook 2024".
According to the minister, in terms of finances it is estimated that in 2023 the fiscal accounts recorded an overall deficit balance of 2.2 percent of the Gross Domestic Product (GDP), and a primary surplus balance of 4.3 percent.
To reverse this scenario, the minister said, the government adopted a series of measures to stimulate the economy and boost its growth potential focused on food security, protecting and creating jobs and increasing the competitiveness of "Made in Angola" products.
José Massano said despite the prevailing risks and challenges centered on price behavior, pressure on the currency, access to credit and the progressive removal of non-productive subsidies, the forecasts for 2024 are positive.
The minister added that the national economy is expected to grow roughly 3 percent, influenced by the growth of almost 5 percent in the non-oil sector, which could offset 3.2 percent of the contraction expected in the oil and gas sector.
Angola spends 200 million dollars monthly to import food, mainly rice, sugar, chicken, wheat and cooking oil, the minister said, underlining that the prices of imported products depend on the level of supply and international markets, the availability of foreign currency and the exchange rate on the domestic market.
According to the minister, in addition to these aspects there is the cost of freight and international transport insurance, as well as the operational and financial conditions for local importers to access foreign markets, a situation worsened by the high dependence on crude oil export.
The minister said the general level of prices has increased, with inflation rising from 13.86 percent in 2022 to 20.01 percent by the end of 2023, heavily influenced by the food and non-alcoholic drinks sector.
Masssano explained that inflation, which is cyclically high, depends on the behavior of food prices, which "in Angola represent around 60% of the typical basket of products and services consumed by our population".
"It is crucial to increase national production, guarantee food security and take advantage of the other opportunities that this development will bring to the economy," the minister said.
The 3rd Angola Economic Outlook Conference (AEO) takes place under the slogan "Food security: Reality, challenges and opportunities", organized by the Ministry of Planning in partnership with Economia & Mercado magazine. OPF/VC/AMP
