(Bloomberg) -- Angola's economy is likely to emerge from recession this year, growing at 0.3% after three years of contraction, and the debt-to-GDP ratio will fall to around 70%, Moody's Investors Service said.
The debt burden remains vulnerable to further exchange rate depreciation given the stock of foreign-currency and foreign-currency linked debt as well as the risk of fiscal consolidation fatigue, Moody's said in an emailed statement.
"The implementation of the IMF program and the government's efforts to clear arrears, improve dollar liquidity and enhance budget implementation, will support Angola's economy," Aurelien Mali, a Moody's Vice President, said.
Reforms planned for this year, including the introduction of a value added tax to broaden the non-oil tax base, will further increase the likelihood of fiscal surpluses while oil prices remain around their current levels, Moody's said.
To contact the reporter on this story: Jacqueline Mackenzie in Johannesburg at jmackenzie9@bloomberg.net
To contact the editors responsible for this story: Alastair Reed at areed12@bloomberg.net, Renee Bonorchis
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