The economy national, entered the first six months of this year, into the stabilization phase, after the recession recorded between 2016 and 2017, a declareaction was done today the Minister of Finance, Archer Mangueira.
This process, according to the Minister of Finance, is the result of responses, such as fiscal consolidation and public finances, given by the Executive to situations that attempted to stagnate the country’s economy.
Archer Mangueira, who was speaking at the opening of the 9th Consultative Council of the Ministry of Finance, which will run until the 23rd, stated that the Macroeconomic Stability Program outlined by the Executive is taking effect in 2018.
“After approximately half of 2018, we are pleased to note the undeniable beginning of the macroeconomic stabilization process”, observed Archer Mangueira.
Based on data published by the National Statistics Institute, he said that real GDP contracted 2.5% in 2017, against 2.6% in 2016.
The most recent estimates, made as part of the preparation of the Macroeconomic Stabilization Program for 2018, point to GDP growth of around 2.2%.
After two years of economic recession, this year (2018) the country will return to growth, assured the head of Finance.
Regarding the general price level, an inflation rate of around 23% is expected, lower than the 28% predicted in the 2018 OGE, against the 23.67 percent in 2017.
For the Minister of Finance, the recovery in the price of a barrel of oil that has been registered in recent months has been influencing this trend.
Visibly satisfied, he said that “this is undoubtedly good news and good signs of the beginning of the macroeconomic stabilization process”.
Without providing data, the government official recalled the “strong” degradation of public accounts recorded in 2015, 2016 and 2017, as a result of the sharp drop in the price of a barrel of oil, starting in the second half of 2014.
The Minister of Finance said that there were dangers already identified in the macroeconomic stabilization program, drawn up by the Executive.
Archer Mangueira said that some dynamics have been maintained in the market, with the potential to generate systemic risk and a new cycle of economic recession.
Among the dynamics, it highlights the continued growth of the government debt stock and treasury stress levels, the maintenance of a low level of execution of capital expenditure and goods and services, mainly in the social sectors.
The increase in the cost of financing private investment, the maintenance of “suppressed” demand for foreign exchange and the continuation of a considerable level of foreign exchange arrears, the increase in the cost of liquidity in the interbank market, the increase in non-performing loans in the banking system and the maintenance of high levels of State arrears with companies were other elements highlighted.
He assured that from a macroeconomic point of view, 2018 has been better than 2016 and 2017.
Under the motto “New Foundations for Fiscal Consolidation”, the Advisory Council is addressing topics related to the fiscal policy of the 2018 General State Budget, budget control system, settlement of arrears, the new Competition Law.
Instruments for modernizing fiscal management, quality of public investment, sustainability of public debt, consolidation of the national financial system, boosting non-oil revenues, privatizations, challenges for the secondary securities market are the main topics on the agenda.
The opening act of the consultative council was chaired by the governor of Luanda, Adriano Mendes de Carvalho, who praised the “trial” of the new revenue collection model.