Angola: Economic sentiment rises to over two-year high in Q3 but remains pessimistic
Economic sentiment continued to improve for the fourth quarter running as the index rose to minus 2.0 in the third quarter from minus 6.0 in the second. The third quarter’s result marked the best reading since the second quarter of 2015, despite remaining in pessimistic territory for the 25th consecutive quarter.
Sector-level data showed that sentiment became less pessimistic in the tourism, communication, transportation, construction, and extractive industries. Meanwhile, sentiment in the manufacturing sector was neutral, and confidence in the commerce sector improved further: Constraints eased despite insufficient demand, financial difficulties and excessive bureaucracy.
The Angolan economy is expected to rebound this year, but the outlook remains grim. The health crisis will remain a key risk to the economy amid a low vaccinate rate, while restrictive measures will remain a feature of the economy and weigh on activity.