Angola Foreign Direct Investment (USD bn)

Available data suggests that growth shifted into a lower gear in Q4 2022. Oil production averaged 1.10 million barrels per day (mbpd), down from 1.16 in Q3. Additionally, the kwanza depreciated by 18.3% throughout Q4, increasing the import bill. That said, fuel subsidies and a strong harvest led inflation to decline during the period, which should have supported domestic activity. Shifting to 2023, an uptick in oil output in January buttressed the sector ahead of scheduled maintenance work in offshore oil field Dalia; the field will halt production for 35 days starting on 20 February. This is set to severely dent output, given that the field produces roughly 0.2 mbpd—about 18% of the country’s output in 2022. In other news, on 13 February, the Parliament approved the 2023 budget. The document projects a fiscal surplus for the third consecutive year and sees oil production at 1.18 mbpd.