Plunging oil prices have been an economic windfall for U.S. consumers, primarily through greater savings at the pump. In energy-reliant countries around the world like Angola, however, the effect has been far less beneficial.
Social and economic turmoil in countries like Venezuela and Russia—largely because of the swoon in global oil prices—has drawn attention away from Angola, an OPEC member that is Africa's second-largest oil producer. The country churns out 1.75 million barrels of oil per day, according to the Energy Information Agency (EIA).
The sub-Saharan country is hugely dependent on oil production to generate revenue for its economy, which the International Monetary Fund (IMF) says accounted for 97 percent of total export revenues in 2012, marginally more than Venezuela's 95 percent.
Although Angola's economic tumult is not as bad as Venezuela's, the situation in the country is pretty grim. Last year, Angola saw net oil export revenue plunge by more than 12 percent to $24 billion, due to tumbling production and crude prices, EIA data notes. Its oil exports account for 50 percent of its domestic economy, and Angola had to drastically slash its 2015 oil price assumptions to $40 per barrel, from $81 per barrel.
The tumble in black gold has created wrenching conditions in the country. Rabah Arezki, head of the commodities research team at IMF, said Angola is suffering from symptoms typical of other crude heavy economies that feel the pain when oil swoons.
"The dramatic fall in oil price is subjecting some oil exporters with limited fiscal space to consolidation, which could exacerbate social tensions," Arezki said.