Angola's 2025 Budget Projections

LUANDA (Reuters) – Angola's government anticipates a budget deficit of 1.65% of gross domestic product in 2025, slightly higher than this year's projected 1.46% deficit, according to draft budget documents.

The draft 2025 budget of Africa's second-largest crude oil exporter is based on a $70 a barrel oil price, as noted in documents posted on the finance ministry's website. Brent crude futures were trading around $74 a barrel on Friday.

Finance Minister Vera Daves de Sousa mentioned that the prospect of lower oil prices is putting significant pressure on the southern African country.

The draft budget also predicts economic growth accelerating to 4.1% next year from 3.3% this year, with rapid growth expected in non-oil sectors.

External financing needs are projected at 7.09 trillion kwanzas ($7.80 billion) in 2025, an increase from the 6.17 trillion anticipated in 2024. Internal financing needs are estimated at 7.55 trillion kwanzas, up from 3.83 trillion this year.

The finance ministry forecasts annual inflation to end next year at 16.6%, down from over 29% currently.

Daves de Sousa indicated that Angola is considering requesting a financing programme from the International Monetary Fund (IMF). The country's most recent IMF programme was for $3.7 billion, approved in 2018 after global crude prices plummeted, severely impacting the country's revenues.

($1 = 909.0510 kwanzas)