The National Bank of Angola reports a surplus in the current account, exceeding two billion dollars, driven by increased trade in goods.
Angola's import of goods and services is secured for the upcoming six months, according to information from the National Bank of Angola (BNA). This assurance stems from a surplus in the current account, which surpassed two billion dollars, equivalent to 4.4% of the Gross Domestic Product. This figure represents a significant 40.1% expansion compared to the previous quarter.
The positive performance of the current account is primarily attributed to a 31.7% increase in the surplus of the goods account. This offset a rise in deficits within the services and primary income accounts, which saw increases of 8.7% and 67.7% respectively. However, the capital and financial account registered a deficit of two point five billion dollars during the same period.
This capital and financial account deficit, which doubled from one point two billion dollars in the prior quarter, was mainly due to medium and long-term capital movements, specifically public external debt. While foreign direct investment showed a positive balance, other capital flows, including commercial credits and deposits with non-residents, also influenced the outcome. The international investment position worsened by one hundred seventy-four point five million dollars due to increased liabilities with non-residents.
Why it mattersInvestors are affected by the secured imports and the current account surplus, which indicates economic stability and potential for trade.
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