Angola’s Finance Ministry has halved its economic growth forecast for this year and decreased government’s expenditure amid the fall of oil prices which affected the state revenues, Reuters reported.

This year, Angola’s economy will grow at 1.3% compared to 3.3%  previously projected in forecasts, a recession relative to the skyrocketing growth that followed the end of a long civil war in 2002. Meanwhile, government spending will be slashed to $24b from an original amount of $30b projected in the  2016 budget. Revenues were also cut to $18b down from $24.4b.

Meanwhile, the ministry confirmed it had ended emergency financing talks with the International Monetary Fund (IMF) because the country had achieved “great fiscal equilibrium.”  It also said it was still committed to a structural modification of its economy that remains heavily dependent on oil.  However, analysts argue that the ministry’s statement may have been an attempt to ease investors’ concerns about their withdrawal from negotiations with the IMF, according to African Business Review.