Short-term liquidity pressures have largely abated after the Angolan government reduced outstanding external debt by $4 billion in 2024, but fiscal slippage, susceptibility to external shocks (particularly an oil price shock), and high dollarization of the economy pose persistent risk. Fiscal and public debt vulnerabilities remain significant, stemming from large--albeit gradually falling--debt service, costly fuel subsidies, and rapidly rising wage costs. We forecast Angola's economy will grow by 2.7% on average in 2025-2028, supported by reasonably steady oil production volumes alongside improving non-oil sector activity. We therefore affirmed our 'B-/B' ratings on Angola and maintained the stable outlook. On Feb. 14, 2025, S&P Global Ratings affirmed its 'B-' long-term and 'B' short-term sovereign credit ratings on Angola. The outlook on
