Angola: Economic sentiment improves in Q1 but remains pessimistic
June 9, 2017
The economic climate indicator (ICE, Indicador de Clima Económico), published by the National Statistical Institute, rose from minus 33 points in Q4 to minus 24 points in Q1. The uptick was driven by improving business sentiment in the manufacturing, trade, transport, tourism, mining and communications sectors, while only the construction sector saw business sentiment deteriorate relative to Q4.
As a highly cyclical industry, construction has been particularly hard-hit by the economic slowdown in recent years, following a massive boom after the civil war ended in 2002. Firms are currently hamstrung by a lack of materials and limited access to credit, while eye-wateringly high interest rates are also acting as a deterrent.
Although most sectors reported improved business sentiment in Q1, only the communication and manufacturing sectors weren’t in broadly pessimistic territory, with firms on average still highly negative regarding economic conditions. Lackluster demand and weak credit conditions were common gripes among companies across sectors.
Author: Oliver Reynolds, Economist