Angola in 2025: Between Oil Dependency and Economic Transformation
Economic Outlook and Current Challenges
Angola’s growth projection for 2025 has been revised down to 2.4 percent from the earlier forecast of 3 percent, indicating challenges in the economic outlook. This downward revision poses risks to fiscal performance.
Despite showing strong economic performance in 2024 with real GDP growth reaching 4.4 percent, Angola is currently facing headwinds due to declining oil revenues and tightening external financing conditions in 2025.
Social and Economic Challenges
The country faces significant social challenges, with the minimum wage covering only 66 percent of the basket of goods and services it did in 2017. Rising unemployment and low wages have left millions of Angolans facing poverty and hunger.
Diversification Efforts and Reform Agenda
The government, led by President João Manuel Lourenço, is implementing wide-ranging measures to transform the economy. These reforms include diversification away from oil, promoting private sector growth, addressing the country’s debt burden, reducing poverty, achieving food and energy security, and creating youth employment.
Energy and Infrastructure Development
The country has made progress in energy infrastructure, with 43 new oil wells coming online throughout 2024. A significant development is the Cabinda refinery plant, which began operations in April 2025 and is expected to supply 5-10% of the country’s refined oil product needs.
International Partnerships and Investment
Angola is strategically positioning itself in the global economy by engaging with both the United States and China amid current geopolitical tensions. The United Arab Emirates is also increasing its investments in Angola, particularly in metals and logistics sectors, helping to diversify the nation’s economic partnerships.
Future Outlook
Despite current challenges, Angola’s economy is expected to continue its recovery, driven by diversification efforts and government reforms. The focus on sectors like agriculture, mining, and tourism is creating new opportunities. The country’s strategic location, young population, and rich resources provide a solid foundation for future growth, and with continued improvements in the business environment, the economic outlook appears promising.
