Portugal’s Banco BPI revised down its 2011 growth forecast for Angola’s economy, citing weak government spending and lower oil production.
Growth in Africa’s second-biggest oil producer after Nigeria is expected to reach 2.5 percent this year, down from 6.3 percent forecast by BPI in May, the bank said in a report on its website.
Oil production in Angola should average 1.54 million barrels a day in 2011 compared with 1.73 million barrels last year. Lower oil output should “in part” be compensated by higher oil prices, BPI said.
BPI, which controls Angolan bank Banco de Fomento Angola, expects the Southern African nation’s economy to grow by 9.8 percent in 2012 as oil production rises and new oil fields start producing.