Angola Economy - 2005

Economy - overview:
Angola has been an economy in disarray because of a quarter century of nearly continuous warfare. An apparently durable peace was established after the death of rebel leader Jonas SAVIMBI in February 2002, but consequences from the conflict continue including the impact of widespread land mines. 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 more than half of exports. Much of the country's food must still be imported. To fully take advantage of its rich natural resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to continue reforming government policies and to reduce corruption. While Angola made progress in further lowering inflation, from 325% in 2000 to about 106% in 2002, the government has failed to make sufficient progress on reforms recommended by the IMF such as increasing foreign exchange reserves and promoting greater transparency in government spending. Increased oil production supported 7% GDP growth in 2003 and 12% growth in 2004.

GDP:
purchasing power parity - $23.17 billion (2004 est.)

GDP - real growth rate:
11.7% (2004 est.)

GDP - per capita:
purchasing power parity - $2,100 (2004 est.)

GDP - composition by sector:
agriculture: 8%
industry: 67%
services: 25% (2001 est.)

Labor force:
5.41 million (2004 est.)

Labor force - by occupation:
agriculture 85%, industry and services 15% (2003 est.)

Unemployment rate:
extensive unemployment and underemployment affecting more than half the population (2001 est.)

Population below poverty line:
70% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):
43.8% (2004 est.)

Investment (gross fixed):
34.5% of GDP (2004 est.)

Budget:
revenues: $9.013 billion
expenditures: $9.562 billion, including capital expenditures of $963 million (2004 est.)

Agriculture - products:
bananas, sugarcane, coffee, sisal, corn, cotton, manioc (tapioca), 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:
1% (2000)

Electricity - production:
1.707 billion kWh (2002)

Electricity - consumption:
1.587 billion kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
0 kWh (2002)

Oil - production:
980,000 bbl/day (2004 est.)

Oil - consumption:
31,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Oil - proved reserves:
22.88 billion bbl (2004 est.)

Natural gas - production:
530 million cu m (2001 est.)

Natural gas - consumption:
530 million cu m (2001 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
0 cu m (2001 est.)

Natural gas - proved reserves:
79.57 billion cu m (2004)

Current account balance:
$-37.88 million (2004 est.)

Exports:
$12.76 billion f.o.b. (2004 est.)

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

Exports - partners:
US 39.8%, China 30.3%, Taiwan 8.1%, France 7.1% (2004)

Imports:
$4.896 billion f.o.b. (2004 est.)

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

Imports - partners:
Portugal 18.4%, US 13.1%, South Africa 10.7%, Japan 6.9%, France 6.3%, Brazil 5.6%, UK 4.9%, China 4.5% (2004)

Reserves of foreign exchange and gold:
$800 million (2004 est.)

Debt - external:
$10.45 billion (2004 est.)

Economic aid - recipient:
$383.5 million (1999)

Currency (code):
kwanza (AOA)

Exchange rates:
kwanza per US dollar - 83.541 (2004), 74.606 (2003), 43.53 (2002), 22.058 (2001), 10.041 (2000)