IBERSOL | Integrated Management Report 2022

STRATEGIC FRAMEWORK Situation in Angola Recent IMF data indicates that in 2022 Angola’s economy continued to recover from the Covid-19 pandemic, supported by higher oil pric- es, improvements in oil production and a strengthening of non-oil ac- tivity, despite the difficult external environment. Angolan GDP is expected to have grown 2,8% in 2022, with a con- tribution of 2,0% from oil activity and 3,2% from non-oil activity. For 2023, projections point to growth of 3,5%, supported by acceleration to 4,3% of the non-oil sector, which will more than offset the decelera- tion of oil GDP, which is not expected to exceed 1,2%. In the medium term, the IMF expects the economy to grow around 4%, reflecting the impact of economic reforms on the growth of the non-oil economy. With regard to inflation, it is projected to decrease from 22,2% in 2022 to 12,3% in 2023 and less than 10% already in 2024. The current account will continue to have a very positive surplus: the forecasts estimate a surplus of 11,0% of GDP in 2022 and a decrease to 6,3% of GDP in 2023. Public debt is estimated to have ended 2022 at 66,1% of GDP, well below the 83,6% at the end of 2021. For 2023, the expectation is for a further decrease to 64,1% of GDP. Angola is coming out of a period of major shocks and strong reform efforts. The current government has had to deal with several years of low oil prices on international markets, negative growth and, subse- quently, the Covid-19 pandemic. Under these difficult circumstances, the authorities have launched significant reforms in the areas of fiscal management (including the introduction of VAT), monetary policy structure, financial stability and central bank independence. 28