Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 346

Article in Press

THE IMPORTANCE OF DEFICIT CONTROL FOR ECONOMIC STABILITY: AN EMPIRICAL ANALYSIS THE ANGOLA

Manuel António Cateve Cale

  •  Received: 27 August 2021
  •  Accepted: 11 October 2021
This research aims to describe the importance of controlling the trade balance deficit for economic stability: an empirical analysis for the Angolan economy in the 2016-2020 period. Empirical analysis indicates that deficits were controlled for 4 years. Because it is an economy that imports part of the raw material for national industrial companies, it caused the outflow of foreign currency to the rest of the world, giving rise to the deterioration of the trade balance. The methodology is descriptive, based on qualitative and quantitative analysis. The investigation of the trade balance deficit is extremely important as it indicates the outflow or inflow of foreign currency into the economy, which implies handling the macroeconomic criterion in order to create economic stability, through public investments, since the domestic companies are not competitive abroad.

Keywords: Angolan Economy, Deficit Control and Trade Balance.