IMF predicts Angola budget deficit

Luanda - Oil-rich Angola will post a budget deficit this year for the first time in five years, the IMF said Wednesday, citing a dramatic fall in oil production.

The Washington-based lender said Luanda would post a 4.0 percent deficit for 2014 and predicted the country's growth would slow to 3.9 percent, down from 6.8 percent in 2013.

The International Monetary Fund (IMF) logo. Credit: REUTERS

“The overall fiscal balance, which was in surplus in the last four years, is expected to deteriorate substantially in 2014,” the IMF said.

It pointed to a 14 percent drop in oil revenues, thanks to unscheduled repair work at some oil fields.

Angola is sub-Saharan Africa's second-largest oil producer after Nigeria and its third-largest economy.

The IMF urged to government to invest oil revenues in developing infrastructure and measures to reduce rampant poverty and inequality. - Sapa-AFP