IMF Warns of Risks to Angola's Economic Stability Amid Oil Volatility

The International Monetary Fund (IMF) revised Angola's economic growth forecast for 2025 down to 2.1% due to lower oil exports. The government is urged to curb borrowing and embrace foreign exchange flexibility amidst growing repayment risks. Angola faces challenges from volatile oil prices and trade tariffs.

The International Monetary Fund (IMF) has revised its economic growth forecast for Angola in 2025, lowering it to 2.1% from an earlier prediction of 2.4%. This adjustment is largely due to a decline in oil exports, the IMF reported on Friday. The organization highlighted increasing risks to Angola's ability to service its debts.

The IMF stressed the importance for Angola to limit borrowing and reduce expenditures while advocating for greater flexibility in its foreign exchange rate. This message follows a review conducted by the IMF board after a team visited Luanda in May, which saw them lowering this year's growth outlook from an initial 3%.

According to the IMF, Angola has been adversely affected by fluctuating oil prices, sovereign spreads, and reduced oil production observed in the first half of 2025. This situation has been exacerbated by U.S. trade tariffs, reflecting the challenges faced by small, open African economies dependent on oil exports.