IBERSOL Annual Report 2018

ANNUAL REPORT 2018 FINAL NOTE Global perspectives for 2019 include the weakening of economic expan- sion, due to several factors, namely the resurgence of protectionist poli- cies in international trade, lower performance of some of the developed and emerging economies and an increase in geopolitical uncertainty and tensions. However, in the short term, the devaluation of the Kwanza led to an increase in the cost of imported products, which did not translate en- tirely into sales prices, leading to a strong compression of the margins of commercial agents. Price hikes, along with stabilization of wages, led to a strong contrac- tion of expenditure, an ensuing steep reduction in business activities and drop in imports. Consequently, means were made available to allow Angola to liquidate many past obligations. Therefore, if a financial situation of importing companies did improve, their business activity dropped because of the fall in consumption, a situation which is expected to continue over coming years. 31