Economic report estimates USD 166 GDP per capita

Luanda – The value of the Gross Domestic Product (GDP) for the 2018-2022 period is estimated to grow by an average of USD 166 a year, a rate deemed insufficient to tackle the steep rise of the population, as outlined in the 2017 Economic Report on Angola produced by the Angolan Catholic University (UCAN) and released last Monday.

Still for the same period, the Angolan economy is forecast to grow on an average 2.8 per cent, although in the first quarter of the present year the country’s GDP recorded a negative growth.

The report, which was presented by the director of UCAN’s Centre for Studies and Scientific Research, Alves da Rocha, provides a very low GDP per capita figure compared to the USD 240 forecast in the 2016 report.

The report states that the country’s population growth rate of 3.1% a year is not being accompanied by positive economic growth due to poor investments in oil production, the country’s main exporting commodity.

In contrast with the official data that presented a 36% poverty rate, the UCAN report provides a figure of 52.1%.

To Alves da Rocha, economic prediction must be made in real terms, since currently there is a reduction in crude-oil production, which is a negative sign for the Angolan economy.

To put some dynamics into the oil sector, he explained, it is important to invest more in technological means, use the product more rationally (saving) and substitute it with renewable sources of energy.

It is not enough to think about the reduction or increase of crude-oil barrel price, but the essential thing is the production capacity, use of technologies in that activity and the substitution (of oil) with renewable energy, warned the specialist.

As regards the internal production outside the extractive industry, the economist stressed that it is a responsibility of the private sector to make the economy work.

However, he appealed to the state to create conditions to support the private sector, with a view to strengthening the ideals of market economy and private property in Angola.

The UCAN releases this Economic Report on Angola once a year.

Source: Angola Press News Agency