Angola is undergoing a difficult economic transition, with its traditional oil sector continuing to shrink while the non-oil economy expands rapidly enough to keep overall growth positive, according to official economic data.
The country’s economy grew by 5.7 percent in the fourth quarter of 2025 compared to the same period in 2024, primarily driven by non-oil activities, preliminary figures from the National Statistics Institute show. For the full year, Angola recorded accumulated growth of 3.13 percent. The non-oil sector expanded by 7.34 percent, while the oil sector contracted by 1.21 percent.
Oil production averaged 1.03 million barrels per day in early 2025, a significant decline from its peak of 2 million barrels per day in 2008, according to industry reports. Despite this, oil still accounts for 95 percent of the country’s exports. Meanwhile, the non-oil sector now represents 80.91 percent of GDP.
The fastest-growing sectors highlight the ongoing diversification: information and communication activities surged by 50.52 percent in 2025, transport and storage grew by 6.35 percent, trade by 5.36 percent, and accommodation and food services by 6.83 percent, according to government statistics.
Inflation remained high at 28.2 percent in 2024, fueled by currency depreciation and the gradual removal of fuel subsidies, the central bank reported. Economic growth is projected at 3 percent for 2025 and 3.6 percent for 2026 — below the initial baseline of 4.0 percent — partly due to the impact of US reciprocal tariffs on government revenues, according to recent forecasts.
Angola’s situation mirrors challenges seen across the region. Like Cameroon, which is also experiencing declining oil output and turning to agriculture and mining, Angola is relying on non-resource sectors to absorb the shock. Whether these sectors can grow fast enough remains the central question for the country’s economic future.
