Angola and China: A Pragmatic Partnership

Angola has enjoyed a period of sustained peace since April 2002 and is preparing for legislative elections in 2008—the first since 1992. From having one of the most protracted conflicts in Africa, Angola has within five years become one of the most successful economies in sub-Saharan Africa. Fuelled by record-high international oil prices and robust growth in both the oil and non-oil sector, Angola has experienced exceptionally high growth rates in recent years. In 2006, real GDP reached 18.6 percent, following the already impressive 20.6 percent in 2005. The IMF projects GDP growth to remain high at 23.4 percent in 2007 and 26.6 percent in 2008. Meanwhile, inflation has fallen from over 300 percent in 1999 to 12 percent in 2006, and surging oil revenues have led to large fiscal and external current account surpluses.