The International Monetary Fund says it expects the Angolan economy to recover somewhat this year and to grow by 1.1 percent.

But a written statement issued at the end of a visit to Angola by a party of IMF officials says the government of Angolan President João Lourenco faces economic challenges.

“Macroeconomic imbalances need to be tackled decisively,” the statement quotes the leader of the IMF party, Ricardo Velloso, as saying. “The new government is fully aware of the challenges and recently approved a six-month plan to guide policy actions until the National Development Plan 2018-2022 is unveiled.”

The six-month plan calls for greater flexibility in foreign exchange rates, better governance and the improvement of the business climate, to make the economy more diverse and economic growth faster and more inclusive, the IMF says.