The International Monetary Fund’s Executive Board completed its Article IV consultation for Angola and discussed the findings of the Financial Sector Assessment Program exercise. Directors concluded that growth held up at 3.1 percent in 2025 and inflation eased, but a significant drop in oil production weakened fiscal and external positions, leaving the medium-term outlook subdued because of structurally declining oil revenues and reinforcing the case for prudent macroeconomic policies and structural reforms. Lower oil revenues and expenditure slippages produced an overall fiscal deficit of 4.1 percent of GDP in 2025, while the current account balance fell to an estimated 0.4 percent of GDP. International reserves were broadly unchanged at USD 15.9 billion, equal to 7.4 months of import cover at end-2025. Directors welcomed the 2026 budget’s planned expenditure adjustment, stressed that fiscal consolidation should remain consistent with the Fiscal Sustainability Law, and recommended using any oil windfall to reduce debt and build buffers as gross financing needs rise and public debt approaches the law’s ceiling in the medium term. They also supported maintaining a tight monetary stance, increasing exchange rate flexibility, and establishing a transparent rules-based foreign exchange intervention framework, while calling for further action to reduce banking sector vulnerabilities, operationalize bank resolution and the financial safety net, resolve problem banks, and implement the FATF Action Plan to support exit from the grey list. Angola has consented to publication of the staff report, which the IMF said will be published shortly, and the next Article IV consultation is expected on the standard 12-month cycle.
International Monetary Fund 2026-05-01
International Monetary Fund completes Angola Article IV consultation and urges fiscal consolidation as oil revenues decline
The International Monetary Fund Executive Board concluded its Article IV consultation for Angola and reviewed the Financial Sector Assessment Program, noting resilient 2025 growth of 3.1 percent and easing inflation but a weakened fiscal and external position from lower oil production and structurally declining oil revenues. Directors backed expenditure adjustment under the 2026 budget, adherence to the Fiscal Sustainability Law, a tight monetary stance with greater exchange rate flexibility and a rules-based foreign exchange intervention framework, and further steps to address banking sector vulnerabilities and implement the Financial Action Task Force Action Plan.