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Security forces arbitrarily arrested and used excessive force against critics of the government, in addition to stopping a number of peaceful anti-government protests and other gatherings.

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The authorities have taken steps to mitigate the impact of the external shock: an 18 percent of GDP improvement in the non-oil primary fiscal balance over 2015-16, mainly through spending cuts including the removal of fuel subsidies, has been implemented; and the kwanza has been devalued against the U. dollar by over 40 percent since September 2014, with international reserves being used to smooth the depreciation.

However, the exchange rate has been re-pegged since April 2016 leading to an appreciation of the kwanza in real terms, and further policy actions are needed to continue adjusting the economy to the ‘new normal’ in the oil market and to return growth to a level consistent with poverty reduction.

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