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The Angolan Economy
According to the World Bank’s international classifi-
cation, Angola is graded as a lower middle-income
economy that nonetheless, enjoys rapid GDP
growth.
In the nearly 15 years since the end of the civil war,
Angola has been rebuilding itself. According to the
IMF, the country ranks fifth among nations with the
highest growth rates over the past ten years, putting
Angola ahead of countries like Brazil, Russia, India
and China (BRIC), which are considered to be the
driving forces of growth in the global economy in
terms of leading accelerated growth. In 2011, Angola
is expected to enjoy a real growth of 7,8% according
to the IMF.
The high growth rates witnessed in recent years
are largely based on surging international oil prices.
‘Black gold’ represents over 75% of everything that
is produced in the country. Diamond exports, an
important sector in Angola’s international trade, are
another significant contributor, responsible for 5% of
the GDP growth in 2010. In addition to being highly
efficient sectors, where cutting-edge technology is
employed, the petrochemical and diamond mining
ECONOMY
Source: National Bank of Angola, IMF and calculations from the Bank of Portugal
industries are also sources of foreign exchange
earnings. The authorities also encourage the liber-
alization of the national economy through increased
trade openness. Angola is among the most open
economies in the world, since the majority of its pro-
ductive sectors are geared towards exports.
Investment in the international market and trade is
its strength, as well as a weakness. Agriculture, for
instance, provides the main source of subsistence
for the Angolan population, but half of the foodstuffs
consumed in the country are still imported.
Living standards in Angola have improved. Typically,
per capita output is a good indicator of living stand-
ards. Implicitly, it marginally encompasses some
qualitative factors, such as educational and health
standards, which are not, however, explicitly repre-
sented by this indicator. Therefore, if the per capita
GDP increases, this can indicate an improvement in
the country’s general economic well-being. The ben-
efits from peace led to an increase in per capita GDP
from 2,300 dollars per year in 2001 to nearly 6,000
dollars in 2011 figures in purchasing power parity
(PPP). It is worth mentioning that although average
life expectancy has increased, it still below western
standards: 48 years of age (compared to 53 years in