Economic development in 1993 was a disaster due to the renewed war and the economic strategy irnplernented’. Macro economic indicators have never been as bad as they were in 1993. The inflation rate for Luanda reached 1,838%, economic growth dropped 23%, monetary quantity increased 780%, the budget deficit reached 33% of total expenditures, and the foreign exchange gap2 grew. Behind this drastic drop in economic growth is the accelerated and almost total breakdown of economic functions and a paralysis of internal production.
The sectors worst affected were agriculture, where overaU production was reduced by half, and the diarnond industry, where output dropped by 75%, compared to 1992.