Angola’s GDP up 0.9 amid pressures of currency devaluation and inflation

Angola’s economy experienced a 0.9 percent growth in GDP in 2023, as reported by the National Bank of Angola (BNA). The BNA’s Annual Report and Accounts for 2023, based on data from Angola’s National Institute of Statistics, highlighted that this growth was primarily influenced by a 2.4 percent decrease in the oil sector and a slowdown in the non-oil sector.

The oil industry remains a significant contributor to Angola’s GDP, accounting for 28.2 percent. However, there was a decline in the oil sector in 2023 due to a 3.3 percent reduction in oil production. The report also mentioned that the non-oil sector’s growth rate decelerated due to currency depreciation and reduced imports, particularly of food items, leading to an imbalance between supply and demand for goods and services.

The Kwanza, Angola’s currency, depreciated by 39.23 percent against the U.S. dollar by December 2023 compared to the same period in 2022. In response to inflationary pressures, the BNA adjusted its monetary policy by maintaining rates unchanged from May to November 2023, signaling a more restrictive stance.

Annual inflation rate was 20.01 percent in 2023, with food and non-alcoholic beverages being the main cause of price increases in the market, accounting for over half of the inflation, according to the report. “It is of utmost importance to emphasize that inflation control remains a central priority for the BNA,”.