Angola’s Non-Oil Sector Mitigates Oil Price Decline Impact

Luanda: The Angolan non-oil sector has effectively mitigated the impact of an 8.65% drop in crude oil prices on the international market during the second quarter of the year. This development highlights the country's economic diversification and the resilience of its non-oil sector, which achieved a 3.43% expansion. According to Angola Press News Agency, received by ANGOP, as a result of the non-oil sector's positive performance during this period, Angola's Gross Domestic Product (GDP) experienced a 1.08% growth compared to the same quarter in 2024. This performance marks a new economic trajectory for Angola, reducing its reliance on oil and increasing its focus on domestic production and productive sovereignty. The INE's Quick Information Note attributes the contraction in the oil sector to a 10% reduction in oil production, although oil remains a significant part of the Angolan economy. Despite this, the national economy stayed in positive territory, bolstered by growth in agriculture (3.14%), manufactur ing (5.15%), commerce (6.50%), and IT and telecom activities, which saw a considerable increase of 38.12%. The INE also highlights that in the current economic configuration, the non-oil sector accounts for 80.52% of GDP, compared to 19.48% for the oil sector, confirming the ongoing process of economic diversification. The data indicate that the Angolan economy is no longer solely dependent on crude oil, with other sectors contributing to stable overall performance. The results suggest that Angola's economic diversification is being consolidated in a measurable and significant manner. The INE notes that non-oil sectors are now the primary drivers of economic activity in Angola, undergoing a transformation process that is enhancing labor absorption capacity and generating stable income for families.