Angola Facts

The economy of Angola is among the least developed countries in the world. The government of Angola is endeavoring to establish it as a self-sufficient economy. Angola had to face a major crisis due to the Civil War and in the post war period they have attempted to rebuild their infrastructure with tied financial aid from IMF . It also depended on China for finances. With the increasing oil production Angola is expected to minimize the influence of IMF on its economic condition.

GDP Growth Rate of Angolan Economy

The Real GDP growth rate in Angola is estimated to be 14% as revealed by the studies in 2006. The year 2006 recorded the highest growth rate of the GDP, which was gradually increasing through 2000,2003,2004 by 3,3.4,11,1 % respectively and reached the peak in 2006. About 45% of the GDP is contributed by the oil sector. The United Nations Angola Verification Mission spent $1.5 million for the implementation of the Lusaka Protocol. But it was unable to arrest the war conditions. Despite this situation the economy marked a rise of 4% in 1999. The government of Angola started a Staff-Monitored Program due to which it could raise the electricity, fuel, and water rates. Privatization and modernization of the various sectors helped their economy to stand up again.

Sectoral Growth in Angolan Economy

The industrial sector in Angola is growing in leaps and bounds. The major industries in the region are, cement, metals, fish processing, brewing, tobacco products, textiles, sugar and natural oil. The petroleum industry contributes half of the GDP and has generated $1.71 million in tax revenue. The oil industry drives the whole economy. In 2005 oil production accounted for 1.4 million barrels, which increased in 2007 and reached 2 million barrels. The conglomerate known as the Sonangol Group looks after this industry. Block Zero produces most of the oil in Angola with 370,000 b/d annually. The US has invested $4 billion in Angola’s oil sector. Diamond is another growing industry in Angola. Endiama is the national diamond company of Angola. The production rose by 30% in 2006.

Agriculture employs 85% of the population. But it is not among the developed sectors. The main crops are, sugarcane, coffee, banana, tobacco, sisal, cotton, and corn. Due to the war the Angolan economy has lost self sufficiency in agriculture and has to depend on imports for its food crops.

Foreign Trade

Angola exports mainly oil and diamonds. Most of its products are exported to USA, China, Europe and Latin America. The revenue earned from export of goods reached $10,530,764,911 in 2004. Petroleum and diamonds are mainly exported to other countries. In 2006 it exported 526,000b/d of oil to USA and 477,000b/d of oil to China. South Africa also trades with Angola. Angola earned $300 million from trading with South Africa.

Inflation Rate

Inflation rate dropped from 32.5% in 2000 to 13% in 2006.

Poverty and Unemployment

Almost 70% of the population lives below the poverty line. Unemployment is rampant in Angola.