Angola question?

Question

how does angola compete with the rest of the world economically. does its geography affect this ?

Answer 1

Angola's economy has undergone a period of transformation in recent years, moving from the disarray caused by a quarter century of war to being the second fastest growing economy in Africa and one of the fastest in the world. In 2004, China's Eximbank approved a $2 billion line of credit to Angola. The loan is being used to rebuild Angola's infrastructure, and has also limited the influence of the International Monetary Fund in the country.

Growth is almost entirely driven by rising oil production which surpassed 1.4 million barrels (220,000 m³) per day in late-2005 and which is expected to grow to 2 million barrels (320,000 m³) per day by 2007. Control of the oil industry is consolidated in Sonangol Group, a conglomerate which is owned by the Angolan government. In December 2006, Angola was admitted as a member of OPEC. The economy grew 18% in 2005, 26% in 2006 and 17.6% in 2007 and it's expected to stay above 10% for the rest of the decade. The security brought about by the 2002 peace settlement has led to the resettlement of 4 million displaced persons, thus resulting in large-scale increases in agriculture production.

The country has developed its economy since political stability arose in 2002. However, it faces huge social and economic problems as a result of an almost continual state of conflict since 1961, although the highest level of destruction and socio-economic damage was reached after the 1975 independence, during the long years of civil war. Rapidly rising production and revenues from the oil sector have been the main driving forces behind the improvements in overall economic activity – nevertheless, poverty remains widespread. Anti-corruption watchdog Transparency International rated Angola one of the 10 most corrupt countries in the world in 2005. The capital city is the most developed and the only large economic center worth mentioning in the country, however, slums called musseques, stretch for miles beyond Luanda's former city limits.

According to an American think tank, oil from Angola has increased so significantly that Angola now is the Chinese Communist Party's biggest supplier of oil.