Angola Faces Steep Drop in Current Account Amid Oil Export Slump
In 2023, Angola saw its current account surplus dramatically decrease by 64.2% from the previous year, ending at $4.2 billion.
This significant shrinkage was mainly due to a steep decline in oil export revenues.
From a robust $11.76 billion in 2022, the balance plummeted to $4.21 billion in 2023. The National Bank of Angola (BNA) points out a 20.2% fall in oil prices as the primary cause.
Despite this decline resulting in a surplus equal to 4.5% of Angola’s GDP, the drop in crude oil exports critically impacted the country’s financial health.
Nonetheless, Angola saw some relief through a 17.1% decrease in imports and narrowed deficits in primary (1.2%) and secondary income (55.8%).
The capital and financial account deficit improved by 49%, reaching $3.9 billion in 2023 from $7.8 billion in 2022.
Additionally, the deficit in Angola’s net international investment position improved by $1.2 billion due to lower liabilities to non-residents, despite a fall in assets.
Angola’s reserve assets rose to $14.7 billion by 2023, covering eight months of imports, up from $14.6 billion in 2022.
This adjustment reflects Angola’s strategic financial management amidst challenging global economic conditions.
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