Angola GDP Q1 2019

Angola: Economy contracts in Q1

Growth slipped back into negative territory at the outset of the year, according to national accounts data released by Angola’s Statistical Institute (INE) on 18 July. The economy contracted 0.4% on an annual basis in the first quarter, contrasting the previous quarter’s revised 2.6% expansion (previously reported: +2.2% year-on-year).

The all-important Angolan oil sector, which accounts for around one-third of GDP, was chiefly behind the downturn. That said, the decline in output moderated in Q1 and was the softest since Q4 2017, likely thanks to an uptick in global crude prices. This contrasted a sharp deterioration in the manufacturing sector, which contracted markedly in Q1, compared to a robust expansion logged in the previous quarter. Similarly, activity in the financial services sector tumbled in Q1 and, alongside a contraction in the telecommunications and commercial sectors, contributed to the overall drop in GDP. On a more positive note, solid construction activity growth somewhat cushioned the deterioration.

Looking ahead, the economy seems increasingly unlikely to recover from a prolonged recession this year. Although ongoing structural economic reforms and continued financial support from the IMF appear to be bearing fruit, the country’s chronic dependence on the oil sector means falling domestic oil production and uncertain global crude prices are adversely impacting external and fiscal accounts.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest