GDP fell 0.4% in the first quarter of 2019 compared to the same quarter of 2018. This contraction was mainly due to the shrinkage of the oil sector (-6.9%), among other sectors. Average oil production stagnated at 1.4 million barrels per day in June.2

Electricity tariffs have been revised upward.3 The EIU estimates that the average increase will be 97%.4 This upsurge may contribute to ignite inflation in the short and medium-term across few sectors. The introduction of value-added tax has been postponed to October this year.5

The World Bank approved a loan agreement of US$1.320 billion to fund: i) Growth and Inclusion Development Policy Operation (US$500 million); ii) Strengthening the National Social Protection System Project/Cash Transfer (US$320 million); and iii) the Luanda Bita Water Supply Project (US$500 million).6

The 2019 Global Multidimensional Poverty Index (MPI) - published by UNDP in partnership with OPHI - revealed that, across 101 countries, 23.1% (1.3 billion people) are multidimensionally poor. In Sub-Saharan Africa, 57.5% of people are considered multidimensionally poor. Half of the 1.3 billion multidimensionally poor people are children under age 18. 7

The 2019 Sustainable Development Goals (SDGs) Report shows that the share of people living in extreme poverty is declining at a slower rate - 8.6% forecasted for 2018 compared with 10% in 2015 - and more than 1/3 of employed workers in Sub-Saharan Africa live on less than US$1.90 a day in 2018. The number of people going hungry has increased since 2014 - an estimated 821 million people were undernourished in 2017. Women and girls continue to be subjected to harmful practices that affect their lives.8

Millennium Atlantic Bank (BMA) will intermediate to open two credit lines with the International Finance Corporation (IFC) worth US$100 million - US$50 million for each credit line. One credit line will be used to support small and medium enterprises, while the other one will support BMA’s international trade transactions.9 State-owned Angola Development Bank (BDA) will make available US$1 billion, as part of the credit line with Deutsche Bank, to support private companies in productive sectors.

Angola approved a loan agreement with Banco Bilbao Vizcaya e Argentaria worth US$37.4 million to fund the construction project of five municipal schools in Uige province.10 A second loan agreement with the same bank was approved for US$150 million, to fund the building of Luanda Ophthalmologic Hospital.11

Angola approved the instructions for the elaboration of State Budget 2020.12 It also approved the decapitalization of sovereignty fund in the amount of US$1 billion to allocate these funds to the implementation of PIIM.13

UNDP Monthly brief July