Market News

LUANDA, Oct 30 (Reuters) – Angola expects its economy will grow about 5.5% next year — similar to this year’s growth rate — if the oil price averages $71 a barrel, a draft budget for 2027 showed on Friday.

Below are more details from the proposed budget, which will be presented in parliament. It could still undergo changes.

• Next year’s growth is expected to be mainly driven by the non-oil sector, which is projected to expand 7.19% in 2027.
• The oil sector is seen contracting 3.82%.
• The government of Sub-Saharan Africa’s second-biggest crude producer forecasts oil production of about 1.00 million barrels per day (bpd) in 2027, compared with 1.05 million bpd in 2026.
• This year’s economic growth was forecast at 5.57% at a mid-year budget review.
• The 2027 budget deficit is projected at 3.8% of gross domestic product.
• The budget envisages expenditure of 37.3 trillion kwanza ($40.9 billion), while debt service is projected at 43%.
• Inflation is expected to ease slightly in 2027, ending the year at 7.27% in annual terms. It stood at 8.43% in September this year.

($1 = 913.0000 kwanzas)