Angola’s economy not in recession, govt borrows $6 bln from Chinese

AFRICA’S third largest economy is not tipping into recession but economic growth will slow, Angolan Vice President Manuel Vicente told parliament on Thursday as he delivered the State of the Nation address on behalf of President Jose Eduardo dos Santos.

Vicente also said that Africa’s second biggest crude producer, which has been hard hit by the sharp fall in oil prices, had borrowed $6 billion from Chinese sources for a range of projects slated for 2016/17.

Sectors covered in the projects would include education, health, water and roads.

Vicente also said Angola expected foreign investment flows over the next two years were expected to reach $10 billion.

“Generally speaking the macroeconomic situation is stable. The good news is that there will not be a recession,” Vicente said.

The reasons for the absence of Dos Santos, in power since 1979, were not known but the chairman of Angola’s parliament said: “We wait for the president to recover as quickly as possible.”

Angola is in a tight spot in the face of depressed prices for oil, which accounts for half of its gross domestic product, 80% of tax revenue and 90% of export earnings.

Luanda has canceled plans for a $1,5 billion Eurobond due to challenging economic conditions and has not set a new time frame for the issue, a finance ministry source said in September.- Reuters