Economic Overview

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Angola's economic reform program coupled with an increase in oil production has stabilized the country's economy.  Economic indicators are all moving in a positive direction.  GDP is increasing and inflation is falling.  Foreign exchange reserves have risen while the national debt has fallen and the current account deficit has narrowed.  The currency is stable.

The new currency, the Kwanza (Kz), which was introduced at the end of 1999, has gradually depreciated about 15%.  However, the floating exchange rate regime is holding steady and the difference between the official and parallel market rates has fluctuated less than 2%.

Angola signed an agreement in April 2000 with the International Monetary Fund (IMF) to set up a Staff Monitored Program (SMP) to identify and implement broad economic reforms, which include:

* reducing state spending
* establishing greater transparency in public accounting
* ending extra-budgetary expenditures
* completing an audit if the oil sector
* expanding investment/infrastructure
* liberalizing foreign trade
* accelerating privatizations
* adjusting tariffs
* revising the tax laws

Economic Reforms

The Angolan government has undertaken broad reforms to ensure economic stability, reduce poverty, ease state controls, encourage private investment and improve public accounting procedures.

Promoting Trade and Investment

The Angolan government, recognizing the importance of foreign participation in the country's economic development, sees the promotion of trade and investment as a top priority.

Did you know that......

* Nearly one-fifth of all US imports from sub-Saharan Africa come from Angola?

* Angola is sub-Saharan Africa's second largest oil producer?

* The United States imports more oil from Angola than from Kuwait?

* Angola is third in the world in new oil discoveries?

* Angola has more known untapped diamond-bearing kimberlite pipes than any other country?

* Angola's annual diamond production could exceed six million carats?