Angola: Economic sentiment in the second quarter records worst reading since Q2 2017
The economic sentiment index came in at minus 21.0 in the second quarter, down from the first quarter’s minus 15.0. Q2’s result marked the weakest sentiment since the second quarter of 2017. The fall in confidence likely reflected the impact of Covid-19 and associated containment measures on economic activity in the quarter.
Data on a sector level showed that the deterioration in business confidence was broad-based, as all but one sector recorded a drop in sentiment levels—the sole sector where confidence rose was commerce; however, it remained firmly entrenched in negative territory. Moreover, confidence levels in all sectors except communication remained in pessimistic territory; sentiment in the communication sector dipped but remained optimistic.
Looking ahead, economic sentiment is likely to remain depressed as the economy continues to feel the pinch from coronavirus-related uncertainty and the drop in global economic activity, as well as still-low oil prices.