Angola bid farewell to its longest serving president, President Eduardo Dos Santos. Dos Santos has ruled the country for thirty-eight years. He is credited for having been able to bring and maintain peace and stability to the country, and for steering the country’s economy toward the path of growth. However, Angola remains a nation of contradictions.
The Angolan government has made concerted efforts to diversify its economy following the 2014/15 oil crisis and the lasting effects of the 2008/09 global economic downturn. This, despite the decline in oil prices has resulting in decreased government revenue, lower gross national income and constrained government expenditure.
In the second half of FY2016 and after having been hard hit by lower global oil prices, Angola announced its FY2017 national budget of an estimated USD 44.22 billion. The allocated budget for FY2017 represents a deficit of around 5% to GDP and is projected to increasing, albeit gradually in the short term.
As is the case in the majority of countries across the globe, Angola’s GDP remains sluggish in line with lower global output, resulting in relatively depressed GDP growth when contrasted with prior years. For instance, in 2014 GDP growth sat at 4.8% then settled at 2.8% in 2015 according to World Bank data, a substantial contraction largely influenced by lower global commodity prices.