Angola has experienced its most significant economic growth since 2014, with a real GDP increase of 4.4% in 2024. This development is highlighted in the latest Angola Economic Update (AEU) by the World Bank Group, titled "Boosting Growth with Inclusive Financial Development." The growth was primarily driven by recovery in the oil sector and diamond extraction, alongside expansion in commerce and fishing.
Despite this progress, Angola continues to face challenges from previous economic stagnation. Between 2016 and 2020, the economy contracted by approximately 10.4%, averaging a yearly decline of 2.1%. The country's reliance on oil makes it vulnerable to global price changes. Although GDP growth is projected at an average of 2.9% from 2025 to 2027, this may not significantly enhance living standards without further diversification.
Juan Carlos Alvarez, World Bank Country Manager for Angola, stated: “The Angolan economy is in urgent need of establishing a consistent pathway toward robust growth to address nearly a decade of stagnation and to improve conditions for poverty alleviation.” He expressed optimism about ongoing government reforms aimed at unlocking the country's potential.
The AEU stresses promoting inclusive financial development as crucial for addressing inequality and exclusion, especially in rural areas where formal banking services are scarce. Women and older adults are particularly affected. By advancing financial inclusion, Angola can boost economic participation and resilience, fostering sustainable growth and poverty reduction.
The report suggests that key reforms could create a more inclusive financial sector essential for diversifying the economy and fostering job creation. It highlights opportunities like digital banking and mobile payments to reach underserved populations.
Benedicte Baduel, World Bank Senior Country Economist for Angola, remarked: “While addressing financial inclusion in Angola has several challenges...there are constructive opportunities to address these barriers.”
Contacts:
In Luanda: Wilson Piassa
In Washington: Daniella van Leggelo-Padilla