Angola Faces Economic Battle Amid Falling Oil Prices and Growing Debt

Angola's economic outlook is worrisome as the IMF cuts its 2025 growth forecast to 2.4% due to lower crude oil prices and higher global interest rates. The nation's debt challenges are exacerbated by dependency on oil exports, leading to discussions with the IMF for potential loan assistance.

The International Monetary Fund (IMF) has revised Angola's 2025 economic growth forecast down to 2.4%, citing concerns over falling crude oil prices and rising global interest rates. Angola, heavily dependent on oil, faces heightened investor anxiety as dollar bonds waver amid economic volatility.

Angola is a major exporter of crude oil, which constitutes 95% of its exports and significantly impacts government revenue. With oil prices dropping, the nation grapples with potential fiscal shortfalls as external debt payments, including a maturing Eurobond, loom on the horizon. Finance Minister Vera Daves de Sousa hints at possible IMF assistance to counteract these challenges.

The social impact is profound, with public spending on services decreasing sharply. This fiscal pressure constrains vital infrastructure investments, pivotal for the country's involvement in the U.S.-backed Lobito transport corridor. Angola's government engages in crucial talks with IMF officials, but the decision on a new lending program is still pending.

(With inputs from agencies.)