• Proposed budget set at 33 trillion kwanzas ($36.05 billion)
• Drop reflects lower oil income and tighter global financial conditions
• Economy expected to grow 2.6% in 2026 after slowdown this year

The Angolan government has proposed a 2026 budget of 33 trillion kwanzas ($36.05 billion), a 4.7% decline from the previous year’s 34.63 trillion kwanzas, following a cabinet meeting on October 27, 2025.

Few details have been released so far, but the government said the draft incorporates input from civil society and key recommendations from the National Assembly. According to Angop, the proposal aims to strengthen fiscal balance and ensure public finance sustainability.

The 2026 finance bill comes as Angola faces lower oil revenues and tighter external financial conditions in the first half of 2025. The IMF reported that the fiscal situation has worsened due to weaker oil prices and production challenges.

World Bank data show Angola’s economy is expected to slow to 2.1% in 2025 from 4.4% in 2024, when it recorded its strongest expansion since 2014, driven by oil, mining, services, and agriculture. Growth is forecast to recover to 2.6% in 2026, slightly above the IMF’s projection of 2.1%.

Inflation has risen from 20.4% in 2023 to 27.5% in 2025, fueled by higher food prices and an increase in diesel costs. In response, the Central Bank of Angola raised its benchmark interest rate by 250 basis points to 19.5%.

The budget proposal will now be submitted to the National Assembly for approval.