Oil industry expands Angola’s economy after consecutive contraction ends

(Bloomberg) – Angola’s economy expanded in the second quarter after the OPEC member’s largest industry — oil and refining — ended two consecutive quarters of contraction.

Gross domestic product rose 0.2% in the three months through June, compared with a 1.1% decline in the prior quarter, the Luanda-based statistics agency said in a report published on its website on Monday. The year-on-year rate was flat, compared with 0.3% growth in the previous three-month period.

The oil and refining industry, which makes up about 26% of GDP, was the main driver of growth. The sector expanded 7.6% in the second quarter, after contracting 4.4% in the prior three months and 6.1% in the last quarter of 2022.

Angola, Africa’s third-biggest oil producer, pumped 3.27 MMboe in the second quarter, compared with 3.23 MMbbl in the three months through March, according to data compiled by Bloomberg. The nation’s currency depreciated by 39% in the second quarter, after remaining little changed in the first quarter, helping earn the country more from its crude exports.