Arab Today, arab today for angola plunging oil price jeopardises budget
Last Updated : GMT 14:00:41
Arab Today, arab today
Arab Today, arab today

For Angola, plunging oil price jeopardises budget

Arab Today, arab today

Arab Today, arab today For Angola, plunging oil price jeopardises budget

Offshore oil rig in Luanda
Luanda - AFP

With oil prices collapsing over 50 percent in the past six months, Angola -- Africa's second-largest oil producer -- has had to introduce austerity measures and overhaul its budget to deal with a severe drop in expected revenue.
"We will go through a difficult time now because the government cannot afford to implement the budget they had adopted for the year," said Jose de Oliviera, an independent consultant in the oil sector.
Angola draws about 70 percent of its income from its oil resources. A price collapse like this, with supply outstripping demand, means a big revenue hit for the government.
The country's budget was adopted late last year and, for the first time since the end of its civil war in 2002, the government planned to spend more on public services than on defence and security.
But that was based on the assumption that a barrel of oil would sell for $81. Today, that figure has plunged to less than $50.
"Some public spending will be cut, including fuel subsidies, projects will be postponed, and the government's fiscal discipline will be strengthened," warned President Jose Eduardo dos Santos late last year.
About 54 percent of Angolans live on less than two dollars a day, according to official statistics released in October.
Dos Santos ran his 2012 presidential campaign on a promise to improve living standards -- promises which may now be thwarted.
- Risk of bigger problems -
"There is a risk of even bigger problems, like being unable to pay the salaries of civil servants, or a drop in the quality and quantity of basic social services, which will affect the poorest the most," said Elias Isaac, director of the Open Society Foundation in Angola.
And with the next general election just two years away, Dos Santos now also runs the risk of social unrest.
"Youth protest movements, which are viewed more and more favourably, are going to increase," said journalism professor and political analyst Celso Malavoloneke.
Demonstrations have been held with increasing frequency in Angola since 2011 and are quickly repressed by the police.
The young people behind these gatherings are demanding the resignation of Dos Santos -- already in power for 35 years -- while denouncing poverty, inequality, a lack of access to water and electricity, and failures in the health and education systems.
Following a brutal civil war which ended in 2002, Angola has seen a decade of strong economic development boosted by its oil reserves -- a wealth that has seen them courted by China, the United States and Europe.
But the 2008 global economic meltdown was a painful hit. Then too the oil price plunged, leading to a stagnant economy, a widening deficit, a rise in unemployment, inflation and a devaluation of the national currency.
"It's very possible that Angolans will again be subjected to a bit of everything now," wrote Carlos Rosado, of weekly newspaper Expansao, in an editorial earlier this month. "The question, is how much."
In a sense, Angola is better prepared to deal with a shock to the economy than it was in 2008. The country has implemented tax reform, built up its financial reserves and made efforts to expand non-oil sectors of the economy.
But, says Malavoleneke, "even if the country is better equipped economically, the situation in the country is more explosive than in 2008. The expectations of the citizens have grown."

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today for angola plunging oil price jeopardises budget Arab Today, arab today for angola plunging oil price jeopardises budget

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 13:37 2017 Thursday ,23 February

Oman oil price rises 30 cents

GMT 05:33 2017 Thursday ,23 February

Oil slips but close to multi-week high

GMT 17:44 2017 Wednesday ,22 February

Gasoline 98 octane price surges LL100

GMT 15:37 2017 Wednesday ,22 February

Nakilat Posts QR 955 Million Profit in 2016

GMT 15:32 2017 Wednesday ,22 February

Laffan Refinery 2 Cost QR 3 Billion

GMT 15:31 2017 Wednesday ,22 February

Oil up 2% as OPEC chief sees higher compliance with cuts
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday