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Lusa - Business News - Angola: Government sees 2023 GDP growing faster than population for first time
Luanda, Jan.23,2022(Lusa) - Angola's government estimates that the country's gross domestic product this year will grow faster than the population for the first time in the country's history, with GDP officially projected to expand by 3.3%. In an interview with Lusa in the week in which the state budget for 2023 was given its first reading in parliament, the secretary of state for finance and the treasury, Ottoniel dos Santos, outlined the document, stressing that its focus is on the "real improvement of economic conditions" in the country and living conditions. The budget, he said, aims to continue projects that were not concluded at the end of the previous term of Angola's president, João Lourenço - who was re-elected in August last year - and focusses on driving the diversification of the economy. Dos Santos argued out that the reforms made by the executive - which has been contending with several years of economic recession and the effects since 2020 of the Covid-19 pandemic - have put the conditions in place "for a turnaround" in GDP and to maintain a positive trajectory. "In 2021, there was a growth of 0.7 percent," he recalled. "This [past] year, above our [previous] expectations, we expect to have growth close to 3 percent [2.7 percent] and we expect, with this budget, to guarantee growth that may, for the first time, be above the population growth rate [projected at 3%], around 3.3 percent." This economic growth will, he said, be based on the oil sector, with a projected 2.9%, but mainly on the non-oil sector, with 3.4%. He acknowledged that this growth was not, so far, reflected in an improvement in the living conditions of the people, but argued that the macroeconomic conditions were still being created to reduce inflation, stabilise the foreign exchange market and improve fiscal discipline. "It should be complemented with the measures that are in the state budget and create bases so that the real economy - the people - can see a positive impact of these efforts that are being made by all Angolans," he said, adding that it is also important to "deepen the measures so that the private sector can occupy a major place in the economy and allows the state to focus on its obligations." With volatile variables, such as the price and output of crude oil, "which are not controlled and are not controllable by the executive," dos Santos noted, there are "risks" to its projections but the government is vigilant. Questioned about the need to create independent bodies for budgetary supervision, the secretary of state said that parliament and the Court of Auditors already carry out these functions. "These institutions are autonomous and have total openness and capacity to analyse the reports that are prepared by the Ministry of Finance," he said. "We feel fully comfortable and have enough elements so that the entire execution of the budget, including debt and other spending that is done, can be accompanied by these bodies." This, he said, will make executing the budget "fluid and aligned with the vision of these bodies." Until the final approval of the budget - which was delayed in 2022, due to the elections held in August - Angola's pulbic finances will have to be meted out month by month in emergency twelfths, "which poses additional challenges," according to dos Santos, given that some departments already face reduced funding. Angola's president has approved additional new debt of 2.6 trillion kwanzas (€4.8 billion) until the 2023 state budget comes into force. The budget bill passed on its first reading on Monday, with UNITA, the main opposition party, the only one voting against. After two days of heated debates, the document was approved with 117 votes in favour from the governing MPLA - which has a majority in the chamber - and the Humanist Party of Angola (PHA), 80 against from UNITA, and four abstentions from the PRS and the FNLA. During the debate, with 51 interventions and 24 points of order, which led several times to the speaker, Carolina Cerqueira, asking for members to calm down, accusations were exchanged, with he governing party criticising their opposition colleagues, more specifically UNITA, for never voting in favour of a budget. The 2023 bill foresees estimated spending of about 20.1 trillion kwanzas (€38.3 billion), of which 13.4 trillion kwanzas is to be financed by tax revenue and 6.6 trillion from financial revenue, including borrowing. RCR/ARO // ARO. Lusa Agency : LUSA Date : 2023-01-24 10:14:00
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