The International Monetary Fund (IMF) has slashed Angola’s economic growth forecast for 2025 to 2.1% from 2.4%, citing lower oil exports and increased risks to the country’s debt repayment capacity.
The IMF warned that Angola’s capacity to repay debt remains adequate but faces heightened risks due to volatile oil prices and tightening external financing conditions.
Angola’s economy is heavily dependent on oil exports, which account for 95% of its exports and significantly impact government revenue.
The IMF emphasized the need for Angola to limit borrowing needs, cut expenses, and adopt greater foreign exchange rate flexibility to mitigate emerging risks and ensure macroeconomic stability.
The country’s debt sustainability analysis shows total debt stood at nearly 70% of GDP last year, with about 80% of its debt in foreign currency, including oil-backed loans from China.
Angola’s government is working to reduce its stock of oil-backed loans to China and faces external debt repayments of $9.1 billion this year, including a Eurobond maturing in November.
The IMF’s assessment follows a Post-Financing Assessment mission to Luanda in May, highlighting the challenges Angola faces in maintaining debt sustainability and promoting economic growth.
