Angola’s government expects a budget deficit of 1.65% of its GDP for 2025, which is slightly higher than the 1.46% deficit predicted for this year, according to draft budget documents.
The budget is based on an estimated oil price of $70 per barrel, while Brent crude is currently trading around $74.
Finance Minister Vera Daves de Sousa noted that lower oil prices are creating pressure on the economy.
The draft budget projects that economic growth will increase to 4.1% in 2025, up from 3.3% this year, with non-oil sectors expected to grow faster.
Angola’s external financing needs are estimated to reach 7.09 trillion kwanzas (about $7.80 billion) in 2025, up from 6.17 trillion in 2024.
Internal financing needs are projected to be 7.55 trillion kwanzas, rising from 3.83 trillion this year.
The finance ministry also estimates that inflation will end 2025 at 16.6%, down from over 29% currently.
Minister Daves de Sousa mentioned that Angola is considering seeking a financing program from the International Monetary Fund (IMF), following a previous program approved in 2018 for $3.7 billion after a significant drop in oil prices affected the country’s revenues.
