Angola/Economy

Economy - overview: Angola is an economy in disarray because of a quarter century of nearly continuous warfare. Despite its abundant natural resources, output per capita is among the world's lowest. Subsistence agriculture provides the main livelihood for 85% of the population. Oil production and the supporting activities are vital to the economy, contributing about 45% to GDP and 90% of exports. Notwithstanding the signing of a peace accord in November 1994, violence continues, millions of land mines remain, and many farmers are reluctant to return to their fields. As a result, much of the country's food must still be imported. To take advantage of its rich resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to implement the peace agreement and reform government policies. Despite the increase in the pace of civil warfare in late 1998, the economy grew by an estimated 4% in 1999. The government introduced new currency denominations in 1999, including a 1 and 5 kwanza note. Expanded oil production brightens prospects for 2000, but internal strife discourages investment outside of the petroleum sector.

GDP: purchasing power parity - $11.6 billion (1999 est.)

GDP - real growth rate: 4% (1999 est.)

GDP - per capita: purchasing power parity - $1,030 (1999 est.)

GDP - composition by sector:

• agriculture: 13%
• industry: 53%
• services: 34% (1998 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:

• lowest 10%: NA%
• highest 10%: NA%

Inflation rate (consumer prices): 270% (1999 est.)

Labor force: 5 million (1997 est.)

Labor force - by occupation:

• agriculture: 85%
• industry and services: 15% (1997 est.)

Unemployment rate: extensive unemployment and underemployment affecting more than half the population (1999 est.)

Budget:

• revenues: $928 million
• expenditures: $2.5 billion, including capital expenditures of $963 million (1992 est.)

Industries: petroleum; diamonds, iron ore, phosphates, feldspar, bauxite, uranium, and gold; cement; basic metal products; fish processing; food processing; brewing; tobacco products; sugar; textiles

Industrial production growth rate: NA%

Electricity - production: 1.886 billion kWh (1998)

Electricity - production by source:

• fossil fuel: 24.97%
• hydro: 75.03%
• nuclear: 0%
• other: 0% (1998)

Electricity - consumption: 1.754 billion kWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 0 kWh (1998)

Agriculture - products: bananas, sugarcane, coffee, sisal, corn, cotton, manioc (tapioca), tobacco, vegetables, plantains; livestock; forest products; fish

Exports: $5 billion (f.o.b., 1999 est.)

Exports - commodities: crude oil 90%, diamonds, refined petroleum products, gas, coffee, sisal, fish and fish products, timber, cotton

Exports - partners: US 63%, Benelux 9%, China, Chile, France (1998)

Imports: $3 billion (f.o.b., 1999 est.)

Imports - commodities: machinery and electrical equipment, vehicles and spare parts; medicines, food, textiles, military goods

Imports - partners: Portugal 20%, US 17%, South Africa 10%, Spain, Brazil, France (1998)

Debt - external: $10.5 billion (1999 est.)

Economic aid - recipient: $493.1 million (1995)

Currency: 1 kwanza (NKz) = 100 lwei

Exchange rates: kwanza (NKz) per US$1 - 577,304 (January 2000), 2,790,706 (1999), 392,824 (1998), 229,040 (1997), 128,029 (1996), 2,750 (1995); note - beginning in June 1998, the official rate is determined weekly in accordance with a crawling peg scheme

Fiscal year: calendar year

Back to Angola