Consultants say more oil means more money for Angolan govt  

BMI Research says greater oil production in Angola will increase fiscal revenue, reduce the budget deficit and allow the government to spend more, Lusa reports.

The Portuguese news agency quotes a report by the consulting firm as saying:

“An increase in oil production will ensure government revenues in the coming quarters, fuelling a reduction of the budget deficit by 2019, but consolidation will be gradual because of an increase in capital and recurrent costs.”

The report says the government’s finances will show a “marked improvement over the coming years due to rising oil prices and increased production”.

BMI Research forecasts that the international price of a barrel of oil will rise to US$54 this year and US$55 next year, Lusa says.