IMF calls for ‘ambitious adjustments’ to Angola’s recovery plan
A few days ago, the International Monetary Fund (IMF) called for “ambitious and growth-friendly adjustments to the government’s plan to meet medium-term fiscal and debt targets” in Angola, encouraging the deepening of reforms.
Article IV, the annual review of Angola’s economy, made the recommendations.
The IMF praised the reforms underway and warned of the need to maintain and deepen non-oil revenue mobilization and public finance management to offset the country’s structural weaknesses.
“The IMF board welcomes the authorities’ commitment to their medium-term fiscal and debt targets and advocated ambitious and growth-friendly adjustments to meet these targets,” reads a statement from the institution published on its website.
In the document, the IMF board recommends an increased mobilization of non-oil revenue, the strengthening of tax revenue management and public finances, and the reform of state-owned enterprises.
For the international financial institution, these efforts and expenditure rationalization will create the necessary fiscal space for public investment and targeted social spending.
The Fund’s analysis comes after the end of the fiscal adjustment program, which was in force until December 2021.
It maintains the Angolan economy’s growth forecast at 3.5% this year and % in the medium term, contrasting with the less optimistic forecasts of most analysts, who estimate a slowdown to around 1% this year.
With information from Forbes
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