Angola GDP Q2 2020

Angola: Recession deepens in Q2 amid Covid-19 fallout

The economic recession deepened markedly in the second quarter due to the fallout from the global pandemic, with the economy contracting a steep 8.8% year-on-year. The print was notably down from the first quarter’s 0.5% drop and marked the strongest fall in a year.

Sector-level data showed that the downturn was broad-based, although the biggest drops in activity were registered in the transportation, construction, mining and fishing sectors. Restrictive measures to curb the spread of the Covid-19 virus severely hampered economic activity. Meanwhile, the oil sector—which accounts for roughly one third of GDP—shrank for the 17th consecutive quarter, with the pace of the fall intensifying compared to the prior quarter (Q2: -8.2% year-on-year; Q1: -1.7% yoy). Lockdowns enacted abroad likely weighed heavily on the sector as the measures dragged on demand for oil.

Moving forward, the economy likely contracted again in the third quarter and it is set to continue its trend through year-end. Next year, the economy is forecast to recover marginally from years of recession amid rebounding international trade levels and strengthening aggregate demand.

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