The chief economist of Standard Bank responsible for Angola told Lusa today that the bank has revised the forecast of economic development in Angola, now anticipating a recession until 2023 and “more pain” for taxpayers
“The expectation is to exit the recession in 2022 and possible return in 2023 if there is no substantial investment in the oil sector due to the end of the useful life of some of the wells,” Fáusio Mussa told the Lusa agency, following the release of the report on African economies, released today.
“Gross Domestic Product contracted 8.8% in the second quarter of 2020, which is more than our expectation of 5.7%, so we now foresee a 5.2% recession in 2020, and we think that the economy will continue to contract in 2021, ”reads the document, which predicts that the oil sector will continue to fall.
“The oil sector continues to experience a decline in production and the recovery of the non-oil economy is likely to be insufficient to lift the economy,” the report added.
