nd its
supporting activities contribute about 85% of GDP. Increased oil
production supported growth averaging more than 15% per year from
2004 to 2007. A postwar reconstruction boom and resettlement of
displaced persons has led to high rates of growth in construction
and agriculture as well. Much of the country's infrastructure is
still damaged or undeveloped from the 27-year-long civil war.
Remnants of the conflict such as widespread land mines still mar the
countryside even though an apparently durable peace was established
after the death of rebel leader Jonas SAVIMBI in February 2002.
Subsistence agriculture provides the main livelihood for most of the
people, but half of the country's food must still be imported. In
2005, the government started using a $2 billion line of credit,
since increased to $7 billion, from China to rebuild Angola's public
infrastructure, and several large-scale projects were completed in
2006. Angola also has large credit lines from Brazil, Portugal,
Germany, Spain, and the EU. The central bank in 2003 implemented an
exchange rate stabilization program using foreign exchange reserves
to buy kwanzas out of circulation. This policy became more
sustainable in 2005 because of strong oil export earnings; it has
significantly reduced inflation. Although consumer inflation
declined from 325% in 2000 to under 13% in 2007, the stabilization
policy has put pressure on international net liquidity. Angola
became a member of OPEC in late 2006 and in late 2007 was assigned a
production quota of 1.9 million barrels a day, somewhat less than
the 2-2.5 million bbl Angola's government had wanted. To fully take
advantage of its rich national resources - gold, diamonds, extensive
forests, Atlantic fisheries, and large oil deposits - Angola will
need to implement government reforms, increase transparency, and
reduce corruption. The government has rejected a formal IMF
monitored program, although it continues Article IV consultations
and ad hoc cooperation. Corruption, especially in the extractive
sectors, and the negative effects of large inflows of foreign
exchange, are major challenges facing Angola.

GDP (purchasing power parity):

$95.46 billion (2007 est.)

GDP (official exchange rate):

$61.36 billion (2007 est.)

GDP - real growth rate:

16.7% (2007 est.)

GDP - per capita (PPP):

$7,800 (2007 est.)

GDP - composition by sector:

agriculture: 9.5%
industry: 65.8%
services: 24.