Macroeconomic Framework
Angola's estimated economic growth for 2021 was set at 0.23%, as a result of the 5.2% growth expansion of the non-oil sector, which represents a reversal of the trajectory of economic contraction since 2016.
WORLD ECONOMY
According to data from the World Bank’s Global Economic Prospects (GEP) report of January 2022, the world economic growth for 2021 stood at 5.5%, an 8.9 percentage point recovery from the previous year. The recovery reflected the easing of restrictions on the movement of people and goods and the implementation of fiscal and monetary stimulus programmes implemented by the different countries between 2020 and 2021.
WORLD ECONOMY
According to data from the World Bank’s Global Economic Prospects (GEP) report of January 2022, the world economic growth for 2021 stood at 5.5%, an 8.9 percentage point recovery from the previous year. The recovery reflected the easing of restrictions on the movement of people and goods and the implementation of fiscal and monetary stimulus programmes implemented by the different countries between 2020 and 2021.
ANGOLAN ECONOMY
Estimated economic growth for 2021 was set at 0.23%, as a result of the 5.2% growth expansion of the non-oil sector, which represents a reversal of the trajectory of economic contraction since 2016, when it declined by 2.6%, according to Government projections, reflecting the 10.6% contraction of the oil sector, due to the moderation of investment in the sector and the maturing of oil production wells.
MONEY MARKET
Liquidity transactions between commercial banks reached AOA 4,010.29 billion in 2021, an annual reduction of 64.84%. The challenges in raising funds, in the context of low economic growth and maintenance of the profitability of Government Securities, together with the maintenance of a restrictive monetary policy, have justified the reduction in the level traded on the market. The downward trend in the amounts traded on the Interbank Monetary Market (IMM) had repercussions on the evolution of the Luibor rates, which generally recorded an annual increase, with the upper limit of 13.10 p.p., corresponding to the Luibor Overnight rate, which was 18.68% in December.
MONEY MARKET
Liquidity transactions between commercial banks reached AOA 4,010.29 billion in 2021, an annual reduction of 64.84%. The challenges in raising funds, in the context of low economic growth and maintenance of the profitability of Government Securities, together with the maintenance of a restrictive monetary policy, have justified the reduction in the level traded on the market. The downward trend in the amounts traded on the Interbank Monetary Market (IMM) had repercussions on the evolution of the Luibor rates, which generally recorded an annual increase, with the upper limit of 13.10 p.p., corresponding to the Luibor Overnight rate, which was 18.68% in December.
EXCHANGE MARKET
The Kwanza exchange rate against the US Dollar closed 2021 at AOA 554.981 per Dollar unit, which represents an annual appreciation of 17.05%, a reversal compared to the 25.77% depreciation recorded in 2020. Similarly, the exchange rate against the European single currency stood at USD/AOA 629.015, an appreciation of 26.93%, which contrasts with the 32.26% depreciation in the previous period. The Kwanza’s trajectory reflects the increased availability of foreign currency in the national economy, associated with the moderation of domestic demand.
BANKING SECTOR
The banking system’s assets stood at AOA 20,520.40 billion at the end of 2021, representing a 5.54% reduction compared to 2020, influenced by the decrease in Debt Securities (-16.99%) and Other assets (-14.03%), which stood at AOA 6,005.91 billion and AOA 3,916.07 billion, respectively. In terms of liabilities, loans fell by 35.49% to AOA 470.93 billion in December and deposits fell by 4.04% to AOA 13,844.65 billion.
BANKING SECTOR
The banking system’s assets stood at AOA 20,520.40 billion at the end of 2021, representing a 5.54% reduction compared to 2020, influenced by the decrease in Debt Securities (-16.99%) and Other assets (-14.03%), which stood at AOA 6,005.91 billion and AOA 3,916.07 billion, respectively. In terms of liabilities, loans fell by 35.49% to AOA 470.93 billion in December and deposits fell by 4.04% to AOA 13,844.65 billion.
CAPITAL MARKET
The amount of treasury bonds sold by the National Treasury reached AOA 1,896.32 billion in 2021, which corresponds to 87.67% of the forecast in the Annual Borrowing Plan for 2021 (ABP 2021). It should be noted that the issue of Treasury Bills reached AOA 486.17 billion (about 84.21% of the forecast in the ABP 2021) and the issue of Treasury Bonds was fixed at AOA 1,410.15 billion (approximately 88.93% of that estimated in the ABP).It is worth noting that the stock market was boosted by the first privatisation of a public bank through a stock exchange auction. This milestone should represent an opportunity to optimise the stock exchange privatisation processes envisaged in the Government’s Privatisation Programme (PROPRIV).