The unprecedented collapse of oil prices in the final six months of 2014 created winners and losers around the world; Angola clearly belongs to the latter category. To call the country a petrostate would be an understatement – pumping out 1.75 million barrels per day in 2014, the oil industry contributes 95% of Angola’s exports, 45% of its gross domestic product (GDP) and 80% of government revenues.
As the price of oil slid from just under $100 per barrel in mid-July to $40 by late February, the Angolan government’s budgetary plans were slowly reduced to tatters. Having originally set out 2015's budget with a baseline of $80 per barrel, it was forced to issue a secondary budget in early March. This planned for a per-barrel minimum of $40, slashed public expenditure by 25% and increased the government’s budget deficit from 5% to 6.9%.
