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- GDP (PPP):
- $130.1 billion
- 4.1% growth
- 3.8% 5-year compound annual growth
- $6,247 per capita
- Inflation (CPI):
- FDI Inflow:
Angola’s economic freedom score is 47.9, making its economy the 158th freest in the 2015 Index. Its overall score has improved by 0.2 point, reflecting improvements in freedom from corruption, labor freedom, and monetary freedom that were largely offset by deteriorations in the control of government spending and fiscal freedom. Angola is ranked 39th out of 46 countries in the Sub-Saharan Africa region, and its score remains far below world and regional averages.
Over the past five years, Angola has advanced its economic freedom by 1.7 points. It has recorded an overall improvement each year since 2011, with gains in six of the 10 economic freedoms, including business freedom, investment freedom, and freedom from corruption.
Nonetheless, significant corruption and a lack of judicial independence because of political interference continue to undermine the foundations for economic progress. The government is highly dependent on oil and diamond revenues and plays an overly dominant role in the economy, undermining efficiency. Monopolies and quasi-monopolies are common in the most important sectors of the economy.
José Eduardo dos Santos has ruled Angola for more than three decades. His Popular Movement for the Liberation of Angola (MPLA) won parliamentary elections in August 2012, only the second such elections since the end of the 27-year civil war in 2002. Angola is Africa’s second-largest oil producer, with much of its proven reserves concentrated in Cabinda province, a region plagued by a separatist conflict. Nevertheless, oil production has nearly doubled from 800,000 barrels a day in 2001 to over 1.4 million barrels a day in 2014. In 2014, a French oil company invested $16 billion in an offshore project. Angola also has natural gas, diamonds, hydroelectric potential, and rich agricultural land. Nonetheless, most Angolans remain poor and dependent on subsistence farming.
Money-laundering legislation was passed in 2014, but government corruption and patronage remain endemic, especially in the extractive sectors. Bribery often underpins business activity. Although courts occasionally rule against the government, the judiciary is subject to extensive political influence, particularly from the executive. Property registration fees can be prohibitively expensive. Overall, protection of property rights is weak.
The individual income tax rate is 17 percent, and the corporate tax rate is 35 percent. Other taxes include fuel and consumption taxes. Tax revenue is equal to 5.6 percent of gross domestic product. Government expenditures are 40.8 percent of domestic income, and public debt has fallen to less than 30 percent of the economy.
Despite the recent implementation of more streamlined business start-up procedures, burdensome regulations still hinder private-sector development. The regulatory system lacks transparency and clarity, and regulations are enforced inconsistently. The formal labor market is underdeveloped. Price controls are pervasive in many sectors, and energy subsidies amounting to 4 percent of GDP are the highest in the region.
Angola has a 7.4 percent average tariff rate. The government procurement process favors domestic companies. Most land is owned by the state, and investment in several sectors is restricted. The underdeveloped financial system has only a limited role in the economy, hampering private entrepreneurial growth. The banking sector, dominated by commercial banks, continues to evolve. There is no stock exchange.