Economic Overview
Angola's high growth rate is driven by its oil sector, with record oil prices and rising petroleum production. oil production and its supporting activities contribute about 85% of gdp. increased oil production supported growth averaging more than 15% per year from 2004 to 2007. a postwar reconstruction boom and resettlement of displaced persons has led to high rates of growth in construction and agriculture as well. much of the country's infrastructure is still damaged or undeveloped from the 27-year-long civil war. remnants of the conflict such as widespread land mines still mar the countryside even though an apparently durable peace was established after the death of rebel leader jonas savimbi in february 2002. subsistence agriculture provides the main livelihood for most of the people, but half of the country's food must still be imported. in 2005, the government started using a $2 billion line of credit, since increased to $7 billion, from china to rebuild angola's public infrastructure, and several large-scale projects were completed in 2006. angola also has large credit lines from brazil, portugal, germany, spain, and the eu. the central bank in 2003 implemented an exchange rate stabilization program using foreign exchange reserves to buy kwanzas out of circulation. this policy became more sustainable in 2005 because of strong oil export earnings; it has significantly reduced inflation. although consumer inflation declined from 325% in 2000 to under 13% in 2007, the stabilization policy has put pressure on international net liquidity. angola became a member of opec in late 2006 and in late 2007 was assigned a production quota of 1.9 million barrels a day, somewhat less than the 2-2.5 million bbl angola's government had wanted. to fully take advantage of its rich national resources - gold, diamonds, extensive forests, atlantic fisheries, and large oil deposits - angola will need to implement government reforms, increase transparency, and reduce corruption. the government has rejected a formal imf monitored program, although it continues article iv consultations and ad hoc cooperation. corruption, especially in the extractive sectors, and the negative effects of large inflows of foreign exchange, are major challenges facing angola.
Environmental Issues
Overuse of pastures and subsequent soil erosion attributable to population pressures; desertification; deforestation of tropical rain forest, in response to both international demand for tropical timber and to domestic use as fuel, resulting in loss of biodiversity; soil erosion contributing to water pollution and siltation of rivers and dams; inadequate supplies of potable water
Government Type
Republic; multiparty presidential regime
Population
12,531,357 (july 2008 est.)
Location
Southern africa, bordering the south atlantic ocean, between namibia and democratic republic of the congo
Area
Total: 1,246,700 sq km
land: 1,246,700 sq km
water: 0 sq km
Slightly less than twice the size of texas
Country Aliases
Conventional long form: republic of angola
conventional short form: angola
local long form: republica de angola
local short form: angola
former: people's republic of angola
Capital
Name: luanda
geographic coordinates: 8 50 s, 13 14 e
time difference: utc+1 (6 hours ahead of washington, dc during standard time)
Military Service
17 years of age for compulsory military service; conscript service obligation - 2 years plus time for training (2001)
International Disputes
Cabindan separatists continue to return to the angolan exclave from exile in neighboring states and europe since the 2006 ceasefire and peace agreement
Sources: Central Intelligence Agency (CIA)
