Angola’s economy should grow by 1.25 percent next year, the International Monetary Fund (IMF) said on Wednesday.

The IMF says the pick-up in growth after no growth this year is based on an expected recovery in the non-oil sector due to increases in public spending and better trade results, said the IMF’s Ricardo Velloso.

Inflation is likely to be 20 percent next year, after reaching 45 percent in the second half half of this year, as the kwanza stabilises and tight monetary conditions take hold.

The IMF says structural reforms were critical to economic diversification, to boost growth and reduce property. “The private sector should have a larger role in the economy, including in the development of infrastructure through a robust system of public-private partnerships and concessions,” he said.

Mr Velloso led an IMF delegation to Luanda earlier this month.