Angola: Economic sentiment slips in the second quarter
The economic climate indicator (ICE, Indicador de Clima Económico) published by the Statistical Institute fell slightly from minus 14 points in the first quarter to minus 15 points in the second quarter of this year. Although the second-quarter result marked the first deterioration since Q4 2016, the index has been entrenched in negative territory since Q2 2015, reflecting the recession that has battered the country for nearly three years.
The reading came against the backdrop of lower oil production, which fell to an over 11-year low in Q2, likely eliminating any gains from higher prices and possibly signaling the further weakening of the external sector. In addition, inflation remained elevated in Q2 which, coupled with the kwanza’s depreciation, likely weighed on consumer demand in the quarter.