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Angolan Economy Recovering - World Bank

July 10, 2014

Thee Angolan economy is currently on a process of recovery, with its Gross Domestic Product recording a real growth of 4,4 percent, after a slow-down in 2013, due to a fall in oil revenues.

The information was released Thursday in Luanda by the World Bank.

In a note that reached Angop on Thursday, the WB says that the economic growth being recorded is higher than the average of 3,5 percent of the 2009/2011 period, but it is lower than the 5,2 percent of 2012.

According to the source, the non-oil sector in Angola grew in 2013, having reached a growth of 6,3 percent in 2013, as a result of a bigger agriculture output and investments in the sector of production of electricity.

Bigger agricultural production and lower prices of imported foodstuffs helped reduce the inflation rate to one digit, reads the WB note.

In the overview, the WB states that the inflation will continue to drop, as a result of the increase in the agriculture output and the prices of agriculture products on the world market.

The fall noted in the oil revenue, associated with a rise in the public expenses, has led to a budget deficit for the first time in 2009, expected to rise to 4,9 percent of GDP, should the budgetary performance reach 100 percent by the end of 2014.

Although the 2014 forecast is favourable, taking into account the expected rise in oil production, it is not expected that oil contributes much to the economic growth. It will be for the non-oil sector to expand rapidly to enable Angola to reach the strong performance of before the 2009 crisis, reads the note.

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Source: AllAfrica

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