Angola Economy Profile 2006

Economy - overview

Angola's high growth rate is driven by its oil sector, with record oil prices and rising petroleum production. Oil production and its supporting activities contribute about half of GDP and 90% of exports. Increased oil production supported 12% growth in 2004 and 19% growth in 2005. A postwar reconstruction boom and resettlement of displaced persons has led to high rates of growth in construction and agriculture as well. Much of the country's infrastructure is still damaged or undeveloped from the 27-year-long civil war. Remnants of the conflict such as widespread land mines still mar the countryside even though an apparently durable peace was established after the death of rebel leader Jonas SAVIMBI in February 2002. Subsistence agriculture provides the main livelihood for half of the population, but half of the country's food must still be imported. In 2005, the government started using a $2 billion line of credit from China to rebuild Angola's public infrastructure, and several large-scale projects are scheduled for completion by 2006. The central bank in 2003 implemented an exchange rate stabilization program using foreign exchange reserves to buy kwanzas out of circulation, a policy that was more sustainable in 2005 because of strong oil export earnings, and has significantly reduced inflation. Consumer inflation declined from 325% in 2000 to about 18% in 2005, but the stabilization policy places pressure on international net liquidity. To fully take advantage of its rich national resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to continue reforming government policies and to reduce corruption. The government has made sufficient progress on reforms recommended by the IMF such as promoting greater transparency in government spending but continues to be without a formal monitoring agreement with the institution.

GDP (purchasing power parity)

$45.32 billion (2005 est.)

GDP (official exchange rate)

$24.35 billion (2005 est.)

GDP - real growth rate

19.9% (2005 est.)

GDP - per capita (PPP)

$3,800 (2005 est.)

GDP - composition by sector

agriculture: 9.6%
industry: 65.8%
services: 24.6% (2005 est.)

Population below poverty line

70% (2003 est.)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

23% (2005 est.)

Investment (gross fixed)

30.3% of GDP (2005 est.)

Labor force

5.58 million (2005 est.)

Labor force - by occupation

agriculture: 85%
industry and services: 15% (2003 est.)

Unemployment rate

extensive unemployment and underemployment affecting more than half the population (2001 est.)

Budget

revenues: $8.5 billion
expenditures: $10 billion; including capital expenditures of $963 million (2005 est.)

Public debt

38.3% of GDP (2005 est.)

Industries

petroleum; diamonds, iron ore, phosphates, feldspar, bauxite, uranium, and gold; cement; basic metal products; fish processing; food processing, brewing, tobacco products, sugar; textiles; ship repair

Industrial production growth rate

13.5% (2004)

Electricity - production

2.24 billion kWh (2004)

Electricity - consumption

1.9 billion kWh (2004)

Electricity - exports

0 kWh (2003)

Electricity - imports

0 kWh (2003)

Oil - production

1.6 million bbl/day (2005 est.)

Oil - consumption

46,000 bbl/day (2003 est.)

Oil - imports

NA bbl/day

Oil - exports

NA bbl/day

Oil - proved reserves

25 billion bbl (2005 est.)

Natural gas - production

720 million cu m (2003 est.)

Natural gas - consumption

720 million cu m (2003 est.)

Natural gas - exports

0 cu m (2001 est.)

Natural gas - imports

0 cu m (2001 est.)

Natural gas - proved reserves

45.87 billion cu m (2005)

Current Account Balance

$4.054 billion (2005 est.)

Agriculture - products

bananas, sugarcane, coffee, sisal, corn, cotton, manioc (tapioca), tobacco, vegetables, plantains; livestock; forest products; fish

Exports

$26.8 billion f.o.b. (2005 est.)

Exports - commodities

crude oil, diamonds, refined petroleum products, gas, coffee, sisal, fish and fish products, timber, cotton

Exports - partners

US 39.8%, China 29.6%, France 7.8%, Chile 5.4%, Taiwan 4.4% (2005)

Imports

$8.165 billion f.o.b. (2005 est.)

Imports - commodities

machinery and electrical equipment, vehicles and spare parts; medicines, food, textiles, military goods

Imports - partners

South Korea 20.8%, Portugal 13.6%, US 12.7%, South Africa 7.5%, Brazil 5.6%, France 5.3%, China 5.1% (2005)

Reserves of foreign exchange and gold

$3.197 billion (2005 est.)

Debt - external

$9.401 billion (2005 est.)

Economic aid - recipient

$383.5 million (1999)

Currency (code)

kwanza (AOA)

Exchange rates

kwanza per US dollar - 88.6 (2005), 83.541 (2004), 74.606 (2003), 43.53 (2002), 22.058 (2001)

Fiscal year

calendar year