IMF gives Angola economic thumbs-up

LUANDA – The International Monetary Fund (IMF) said on Friday Angola’s economic outlook remained generally favourable, but further steps were needed to create a sustainable fiscal position and reduce inflation.

The IMF said that Angola’s foreign exchange reserves were recovering on the back of higher oil prices, but that the payment of arrears was weighing on the African nation’s output and employment.
‘The economic developments since the programme was approved have been broadly in line with expectation. Data for the first half of 2010 show signs of solid economic recovery reflecting higher oil prices and production that have boosted government revenues and international reserves,’ it said in a statement.
The statement was released at the end of an IMF mission to Angola to carry out the second and third review of a US$1,3 billion loan to Angola approved in November last year.
The IMF said talks on the second and third review of the loan were to continue. IMF Mission Chief to Angola Lamin Leigh told reporters at a news conference in Luanda that the IMF had disbursed roughly US$500 million since the programme began. Angola’s government sharply cut its estimate for 2010 economic growth to 6,7 per cent from a previous forecast of 9,7 per cent in a revised budget submitted to parliament last week.