Angola's economy showed strong recovery in 2024, with a real GDP growth of 4.4%, driven by the oil sector and non-oil sectors like mining, commerce, and agriculture. Despite this progress, Angola has not yet regained the 10.4% loss in real GDP experienced between 2016 and 2020.
The labor market remains weak, with high inflation impacting households' living conditions. Poverty is still significant at around 31.1%, and inequality persists with a Gini index of 51.3.
Macroeconomic balances have been sustainable but fragile. The external account improved in 2024 due to reduced refined fuel imports, strengthening international reserves and stabilizing the exchange rate. However, inflation remained high at 28.2%. Public finances saw a slight deterioration with a fiscal deficit of about 1.2% of GDP despite better revenue figures. Public debt decreased to 71% of GDP due to high nominal GDP growth.
Economic prospects are moderate, with risks increasing amid global uncertainty and declining oil prices. Real GDP growth is expected to average 2.9% from 2025 to 2027 but may not improve living standards for all Angolans significantly.
Chapter two of the Angola Economic Update highlights inclusive financial development as crucial for higher and diversified growth. Financial inclusion involves making financial services accessible to underserved individuals and businesses, empowering them economically.
Digital solutions like mobile banking have expanded financial services into remote areas, boosting economic growth and reducing poverty by providing capital for MSMEs (Micro, Small & Medium Enterprises). Despite its oil wealth, Angola faces inequality and exclusion in rural areas lacking formal banking access.
Inclusive financial development promotes economic participation and resilience by enabling investments in entrepreneurship that lead to productivity gains and job creation while allowing spending on education and healthcare.
The rise of digital banking offers Angola an opportunity to expand financial services further, fostering inclusive development beyond Luanda through economic activity along value chains such as those found within Lobito corridor projects or secondary city developments.
Challenges remain regarding limited reach among rural communities where many banks concentrate primarily within urban centers; additionally compounded by high costs associated with opening accounts coupled alongside insufficient literacy levels amongst citizens preventing broader access towards formalized systems needed most urgently now more than ever before given current socio-economic climate conditions facing nation today which include issues related directly back toward governance aspects involving anti-money laundering measures plus combating terrorism financing regulations alike —all necessitating urgent addressment via targeted reforms encompassing regulatory frameworks alongside innovative approaches centered around education efforts designed specifically towards improving inclusivity outcomes across board moving forward long-term basis sustainably over time ahead ultimately benefitting everyone involved equally without exception whatsoever throughout entirety process itself 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