Angola’s rise as a major African economy has continued unabated in the past two years. Since its downturn in late 2008 and 2009, the Lusophone country has recovered its position as one of the world’s most buoyant economies. Gross domestic product (GDP) rose almost 8% in real terms in 2012 and could do so by even more this year, according to Standard Bank.
Angolan policy-makers have, moreover, learnt from the financial slump of four years ago and since rectified some of the oil-rich country’s most glaring macroeconomic weaknesses. The problems during that period, while caused by a fall in crude prices, were exacerbated by high inflation and a lack of foreign exchange (FX) reserves to counter a balance of payments crisis. After signing a standby facility with the International Monetary Fund (IMF) in 2009 and completing an adjustment programme last year, Angola’s financial situation has improved. Inflation fell to single digits for the first time on record in August 2012, while FX reserves stood at an all time high of $33bn at the end of last year.
