Angola's debt lower, but continued fiscal adjustment needed

PUBLISHED: Wed, 25 Jan 2017 07:52:53 GMT

Angola’s public debt is projected to narrow to 62.8 percent of gross domestic product in 2017, from 71.6 percent last year, the International Monetary Fund said late on Tuesday.

Weaker oil prices in the last three years has constrained growth and put state finances under pressure in Africa’s second- biggest crude producer.

“…continued fiscal adjustment will be needed going forward to put public debt on a clear downward path while supporting economic growth over the medium term,” the IMF said in a statement after the IMF team met government officials.

The fund urged Angola, where banks grapple with liquidity and foreign currency shortages, to phase out exchange restrictions and multiple currency practices.

It also said the southern African nation should more forcefully address its dependence on oil and diversify the economy.

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