Angola Economic Outlook
Oil-dependent economy:
Angola is Sub-Saharan Africa’s third-largest economy and the continent’s second-largest oil producer after Nigeria. The petroleum sector dominates, contributing around 90% of exports and 30% of GDP. However, heavy reliance on oil makes Angola vulnerable to volatile global energy prices, leading to recurrent economic instability. The country’s economic performance has been shaped by oil booms and busts, with a prolonged recession from 2016 to 2020 following the oil price crash.
Diversification efforts and reforms:The government has been pursuing economic diversification and privatization initiatives to reduce dependence on oil. Sectors such as agriculture, mining (notably diamonds), and tourism have been targeted for development. Angola is also implementing structural reforms, including tax modernization, easing business regulations, and currency liberalization. The country moved to a floating exchange rate in 2018, reducing reliance on costly central bank interventions to prop up the kwanza.
Debt challenges and external financing:Angola has faced significant debt burdens, with total public debt exceeding 80% of GDP in recent years. A large portion of this debt is owed to China, which has financed infrastructure projects through oil-backed loans. To improve fiscal sustainability, Angola has engaged in IMF-backed reform programs and debt restructuring efforts with its creditors. These measures, coupled with stronger oil revenues in 2022 and 2023, have improved Angola’s fiscal position.
Angola’s economic outlook:While Angola’s economic growth has rebounded in recent years, long-term prospects depend on the success of diversification efforts, continued fiscal discipline, and improved business conditions. Growth is expected to moderate as oil production declines, making non-oil sectors crucial for sustaining economic expansion. Angola’s ability to attract investment, implement governance reforms, and develop infrastructure will be key to achieving more sustainable and inclusive growth.
Angola's Macroeconomic Analysis:
Nominal GDP of USD 89.8 billion in 2023.
Nominal GDP of USD 89.8 billion in 2023.
Nominal GDP of USD 89.8 billion in 2023.
GDP per capita of USD 2,449 compared to the global average of USD 10,589.
GDP per capita of USD 2,431 compared to the global average of USD 10,589.
GDP per capita of USD 2,431 compared to the global average of USD 10,589.
Average real GDP growth of 0.5% over the last decade.
Average real GDP growth of 0.5% over the last decade.
Average real GDP growth of 0.5% over the last decade.
Sector Analysis
In 2022, services accounted for 39.7% of overall GDP, manufacturing 8.0%, other industrial activity 37.4%, and agriculture 14.9%. Looking at GDP by expenditure, private consumption accounted for 53.8% of GDP in 2023, government consumption 6.4%, fixed investment 26.6%, and net exports 13.2%.International trade
In 2022, manufactured products made up 0.7% of total merchandise exports, mineral fuels 94.9%, food 0.2%, ores and metals 4.1% and agricultural raw materials 0.0%, with other categories accounting for 0.1% of the total. In the same period, manufactured products made up 58.3% of total merchandise imports, mineral fuels 22.4%, food 17.9%, ores and metals 0.6% and agricultural raw materials 0.9%, with other goods accounting for -0.1% of the total. Total exports were worth USD 36.80 billion in 2024, while total imports were USD 14.20 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 0.5% in the decade to 2023. To read more about GDP growth in Angola, go to our dedicated page.
Fiscal policy
Angola's fiscal deficit averaged 0.8% of GDP in the decade to 2022. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 16.1% in the decade to 2023. For more information on Angola's unemployment click here.
Inflation
Inflation averaged 20.4% in the decade to 2024. Go to our Angola inflation page for extra insight.
Monetary Policy
Angola's monetary policy rate ended 2024 at 19.50%, up from 9.00% a decade earlier. See our Angola monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the kwanza weakened by 88.8% vs the U.S. dollar. For more info on the kwanza, click here.
Economic situation in Angola
The economy started the year with unexpected vigor as annual GDP growth accelerated to 3.5% in Q1 (Q4 2024: +2.6% yoy), remaining strong by both pre-pandemic and regional standards. The construction, agriculture and domestic trade sectors posted improvements, while mining output continued to grow at one of the fastest paces in recent decades due to the activation of the Luele diamond mine in late 2023. Still, hydrocarbons production—around half of GDP and 90% of goods exports—remained a key drag on growth amid maturing oil fields. In Q2, our panel sees GDP growth hovering around Q1’s level. However, risks appear skewed to the downside due to a lofty base effect, high interest rates and inflation. Moreover, in early Q2, oil output shrank further, crude prices tumbled, and Trump’s “reciprocal” tariffs darkened the outlook for commodities, boding ill for trade and fiscal revenues.Angola Economic Forecasts
Projections out to 2034.47 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 16 expert analysts.
Want to get insight on the economic outlook for Angola in the coming years? FocusEconomics collects projections out to 2034 on 47 economic indicators for Angola from a panel of 16 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Angola economy. To download a sample report on the Angola's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.