Angola Targets 5.5% Growth in 2027 on $71 Oil, Draft Budget Shows

Angola expects its economy to grow about 5.5% in 2027, close to this year’s pace, if oil averages $71 a barrel. The draft budget for 2027 showed on Friday, Oct 30, in Luanda and will be presented in parliament, where it could still undergo changes.

The growth is expected to be driven mainly by the non-oil sector, while crude output is projected to fall. Angola is Sub-Saharan Africa’s second-biggest crude producer.

Non-oil sector to drive growth

The non-oil sector is projected to expand 7.19% in 2027. The oil sector is seen contracting 3.82%. The government forecasts oil production of about 1.00 million barrels per day 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.

Deficit, spending and debt service

The 2027 budget deficit is projected at 3.8% of gross domestic product. The budget envisages expenditure of 37.3 trillion kwanza, about $40.9 billion. Debt service is projected at 43%.

Inflation expected to ease

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.