IMF to discuss financial support with Angola

The International Monetary Fund (IMF) said on Tuesday it would begin talks with Angola over providing financial support after the country’s economic growth was weaker than expected this year.

Africa’s second-largest oil producer has been hit by lower oil prices, which have caused a dollar liquidity squeeze, discouraging many from investing.

Angola’s Finance Ministry said on Monday it had sought financial support from the IMF but did not provide further detail on how much money was involved.

Angola’s economy has struggled due to lower oil prices, a situation made worse by declining production. Output is expected to fall to 1.5 million barrels per day in 2018, down from 1.6 million last year.

The IMF expects the country’s economy to grow 2.2 percent this year, well below an original government forecast of 4.9 percent.

President João Lourenço, who took over last September has said he wants to bring about an economic miracle in Angola by opening up to foreign investment and diversifying away from oil.