Angola - Economy (contd-1)

Economy - overview Angola's high growth rate in recent years was driven by high international prices for its oil. Angola became a member of OPEC in late 2006 and its current assigned a production quota of 1.65 million barrels a day (bbl/day). Oil production and its supporting activities contribute about 85% of GDP. Diamond exports contribute an additional 5%. Subsistence agriculture provides the main livelihood for most of the people, but half of the country''s food is still imported. Increased oil production supported growth averaging more than 17% per year from 2004 to 2008. A postwar reconstruction boom and resettlement of displaced persons has led to high rates of growth in construction and agriculture as well. Much of the country''s infrastructure is still damaged or undeveloped from the 27-year-long civil war. Land mines left from the war still mar the countryside, even though peace was established after the death of rebel leader Jonas SAVIMBI in February 2002. Since 2005, the government has used billions of dollars in credit lines from China, Brazil, Portugal, Germany, Spain, and the EU to rebuild Angola''s public infrastructure. The global recession that started in 2008 temporarily stalled economic growth. Lower prices for oil and diamonds during the global recession slowed GDP growth to 2.4% in 2009 and to 3.4% in 2010, and many construction projects stopped because Luanda accrued $9 billion in arrears to foreign construction companies when government revenue fell in 2008 and 2009. Angola abandoned its currency peg in 2009, and in November 2009 signed onto an IMF Stand-By Arrangement loan of $1.4 billion to rebuild international reserves. Consumer inflation declined from 325% in 2000 to 14% in 2011. Higher oil prices in 2011, helped Angola climb turn a budget deficit of 8.6% of GDP in 2009 into an surplus of 7.5% of GDP in 2010. Corruption, especially in the extractive sectors, also is a major challenge. GDP (purchasing power parity) $115.9 billion (2011 est.) $111.7 billion (2010 est.) $108 billion (2009 est.) note: data are in 2011 US dollars GDP (official exchange rate) $99.3 billion (2011 est.) GDP - real growth rate 3.7% (2011 est.) 3.4% (2010 est.) 2.4% (2009 est.) GDP - per capita (PPP) $5,900 (2011 est.) $5,900 (2010 est.) $5,800 (2009 est.) note: data are in 2011 US dollars GDP - composition by sector agriculture: 9.6% industry: 65.8% services: 24.6% (2008 est.) Population below poverty line 40.5% (2006 est.) Labor force 8.24 million (2011 est.) Labor force - by occupation agriculture: 85% industry and services: 15% (2003 est.) Unemployment rate NA Household income or consumption by percentage share lowest 10%: 0.6% highest 10%: 44.7% (2000) Investment (gross fixed) 13.4% of GDP (2011 est.) Budget revenues: $42.86 billion expenditures: $35.41 billion (2011 est.) Taxes and other revenues 43.2% of GDP (2011 est.) Budget surplus (+) or deficit (-) 7.5% of GDP (2011 est.) Public debt 24.5% of GDP (2011 est.) 21.4% of GDP (2010 est.) Inflation rate (consumer prices) 14.3% (2011 est.) 14.5% (2010 est.) Central bank discount rate 25% (31 December 2010 est.) 30% (31 December 2009 est.) Commercial bank prime lending rate 17% (31 December 2011 est.) 22.68% (31 December 2010 est.) Stock of narrow money $8.567 billion (31 December 2011 est.) $18.17 billion (31 December 2010 est.) Stock of money $8.446 billion (31 December 2008) $4.153 billion (31 December 2007) Stock of quasi money $10.41 billion (31 December 2008) $7.216 billion (31 December 2007) Stock of broad money $27.74 billion (31 December 2011 est.) $28.14 billion (31 December 2010 est.) Stock of domestic credit $22.1 billion (31 December 2011 est.) $18.95 billion (31 December 2010 est.) Agriculture - products bananas, sugarcane, coffee, sisal, corn, cotton, cassava (manioc), tobacco, vegetables, plantains; livestock; forest products; fish Industries petroleum; diamonds, iron ore, phosphates, feldspar, bauxite, uranium, and gold; cement; basic metal products; fish processing; food processing, brewing, tobacco products, sugar; textiles; ship repair Industrial production growth rate 5% (2010 est.) Electricity - production 3.944 billion kWh (2008 est.) Electricity - production by source fossil fuel: 36.4% hydro: 63.6% nuclear: 0% other: 0% (2001) Electricity - consumption 3.365 billion kWh (2008 est.) Electricity - exports 0 kWh (2009 est.) Electricity - imports 0 kWh (2009 est.) Oil - production 1.988 million bbl/day (2010 est.) Oil - consumption 74,000 bbl/day (2010 est.) Oil - exports 1.851 million bbl/day (2009 est.) Oil - imports 38,280 bbl/day (2009 est.) Oil - proved reserves 9.5 billion bbl (1 January 2011 est.) Natural gas - production 690 million cu m (2009 est.) Natural gas - consumption 690 million cu m (2009 est.) Natural gas - exports 0 cu m (2009 est.) Natural gas - imports 0 cu m (2009 est.) Natural gas - proved reserves 309.8 billion cu m (1 January 2011 est.) Current Account Balance $7.755 billion (2011 est.) $7.126 billion (2010 est.) Exports $65.63 billion (2011 est.) $50.59 billion (2010 est.) Exports - commodities crude oil, diamonds, refined petroleum products, coffee, sisal, fish and fish products, timber, cotton Exports - partners China 42.8%, US 23%, India 9.5%, France 4% (2009) Imports $24.76 billion (2011 est.) $18.34 billion (2010 est.) Imports - commodities machinery and electrical equipment, vehicles and spare parts; medicines, food, textiles, military goods Imports - partners Portugal 17.4%, China 14%, US 9%, Brazil 6.6%, South Africa 6%, France 5.8%, India 5.3% (2009) Reserves of foreign exchange and gold $28.3 billion (31 December 2011 est.) $19.66 billion (31 December 2010 est.) Debt - external $19.74 billion (31 December 2011 est.) $18.11 billion (31 December 2010 est.) Stock of direct foreign investment - at home $101 billion (31 December 2011 est.) $88.4 billion (31 December 2010 est.) Stock of direct foreign investment - abroad $6.346 billion (31 December 2011 est.) $5.096 billion (31 December 2010 est.) Exchange rates kwanza (AOA) per US dollar - 93.21 (2011 est.) 91.91 (2010 est.) 79.33 (2009) 75.023 (2008) 76.6 (2007) Fiscal year calendar year