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Quick Facts
- Population:
- GDP (PPP):
- $221.3 billion
- -1.6% 5-year compound annual growth
- $58,383 per capita
- Unemployment:
- Inflation (CPI):
- FDI Inflow:
- Public Debt:
Angola’s economic freedom score is 53, making its economy the 130th freest in the 2023 Index. Its score has improved by 0.4 point. Angola is ranked 26th out of 46 countries in the Sub-Saharan Africa region, and its overall score remains far below world and regional averages.
Pervasive corruption and political interference in the judiciary continue to undermine the foundations of economic freedom in Angola. The government is highly dependent on oil and diamond revenues. Its domination of the economy undermines efficiency, and the regulatory environment remains constrained by a lack of commitment to policies that support open markets.
Background
When President José Eduardo dos Santos stepped down in 2017 after 38 years, he was succeeded by former Defense Minister João Manuel Gonçalves Lourenço, also from the Popular Movement for the Liberation of Angola. Lourenço won reelection in 2022 by the smallest margin of victory in his party’s history. Angola is one of Africa’s largest oil producers, but because of production problems and the long global slump in oil prices, exports of crude oil are at their lowest level in more than a decade. Despite the country’s oil, diamonds, hydroelectric potential, and rich agricultural land, most Angolans remain poor.
Rule of Law
The overall rule of law is weak in Angola. The country’s property rights score is below the world average; its judicial effectiveness score is below the world average; and its government integrity score is below the world average.
Government Size
The top individual and corporate tax rates are 25 percent. The tax burden equals 10.1 percent of GDP. Three-year government spending and budget balance averages are, respectively, 20.9 percent and 0.9 percent of GDP. Public debt equals 86.4 percent of GDP.
Regulatory Efficiency
Despite the recent implementation of more streamlined business start-up procedures, the overall regulatory framework lacks transparency and clarity, and regulations are enforced inconsistently. The formal labor market is underdeveloped. The most recent available inflation rate is 25.8 percent.
Open Markets
The trade-weighted average tariff rate is 10.1 percent, and nontariff measures further undermine trade flows. The government’s sectoral restrictions on foreign ownership continue to limit foreign investment. Despite some progress, access to credit remains difficult, and the equity market is underdeveloped.