Angola was hit hard by the effects of the pandemic (mainly due to loss of revenue from lower oil prices, given its oil dependence: 90% of exports, 60% of fiscal revenue) although it was already carrying vulnerabilities entering the crisis.
But a combination of IMF support, official sector debt restructuring (a debt restructuring agreement with China and deferral, under the G20's Debt Service Suspension Initiative (DSSI), of debt service payments on its bilateral debt), and sound policies helped it weather the storm reasonably well, and avert a sovereign default. Higher than expected oil prices this year also helped improve the near-term outlook.
However significant challenges remain, especially with elections next year, not least Angola’s persistently sluggish economic growth rate and securing debt sustainability (with public debt/GDP c100%).
In this slide deck (available to Tellimer Insights Pro clients), we summarise recent economic developments in Angola, investor perceptions of the sovereign bonds and the risks and challenges that the economy is facing.
Click on the “Read the full report” button below for the full presentation.