Angola minister-economy to expand 8.2 pct in 2010

By Henrique Almeida

LUANDA (Reuters) - Angola's economy minister on Tuesday revised downwards the nation's economic growth forecast to 1.3 percent in 2009 from 6.2 percent, but said growth should pick up next year on the back of the non-oil sector.

Manuel Nunes Junior predicted Angola's economy would expand by 8.2 percent in 2010 with the non-oil sector growing around 15 percent compared to 5.2 percent growth this year.

"This is a sign that our economy is diversifying to sectors like agriculture, manufacturing and trade," Junior said after submitting the country's 2010 budget to parliament.

The oil sector is seen growing 1.1 percent next year compared to a 3.6 percent contraction this year, he added. Angola rivals Nigeria as Africa's biggest oil producer and oil accounts for around 40 percent of gross domestic product.

Parliament is expected to approve Angola's 2010 budget in coming weeks. The budget increases spending by 50 percent to 3.9 trillion Angola kwanzas compared to the previous year.

Higher GDP growth and a rise in government spending is good news for investors in oil-producing Angola, most of whom rely on government contracts to rebuild roads, bridges and other infrastructure destroyed by the country's 27-year civil war.

The war ended in 2002.

The country is recovering from a sharp drop in oil prices that caused the government to devalue the local currency, delay payments to building companies of up to $2 billion and ask for a $1.3 billion loan from the International Monetary Fund.