In an official statement released on its website, outlining the board of directors’ conclusions regarding the Post-Financing Assessment of 2025, the Bretton Woods institution notes that Angola’s “payment capacity remains adequate,” yet risks have increased compared to last year.
The international financial body highlights that Angola “faced a decline in oil revenues and tightening external financial conditions in the first half of 2025,” resulting in a deterioration of the fiscal position, with the total deficit projected to rise to 2.8% of GDP in 2025, compared to 1.0% in 2024.
The Fund also draws attention to short-term financing pressures due to the maturity of a significant amount of external debt and anticipates a slowdown in growth in the short term.
In May, the preliminary growth projection for Angola in 2025 had already been revised from 3% to 2.4% after bilateral consultations between the Fund and the Ministry of Finance under Article IV (periodic review of the economic progress and policies of a member country), but now the multilateral entity projects a growth of 2.1%.
On the other hand, although Angola’s payment capacity is deemed “adequate,” it is subject to increasing risks.
The IMF’s executive directors highlight that vulnerabilities have intensified recently due to persistent challenges in oil production and price pressures and urged the authorities to adopt “prudent macroeconomic policies and sustained reform efforts.”
They also noted that risks to payment capacity have increased compared to the previous year due to high external debt service, greater oil price volatility, and weaker prospects for fiscal and external balances, emphasizing “the need to rationalize expenditures to preserve fiscal space and contain indebtedness.”
They stressed the importance of advancing the reform of fuel subsidies, accompanied by measures to protect the most vulnerable and an effective communication strategy, and welcomed progress in mobilizing non-oil revenues.
The IMF cautioned against excessive reliance on short-term, high-cost financing, highlighting the importance of mobilizing donor resources for development expenses, encouraging Angola to proceed with debt payment alleviation and manage indebtedness prudently.
In the statement, the institution also recommends avoiding a premature loosening of monetary policy to sustain disinflation and anchor inflation expectations and encourages the National Bank of Angola to maintain strict oversight of systemic risks.
“Strengthening the anti-money laundering and combating the financing of terrorism (AML/CFT) framework and exiting the Financial Action Task Force’s (FATF) grey list remain important priorities,” it adds.
