Mozambique: Traffic Management Park inaugurated to reduce congestion - Photos
The government will run a $1.26 bn deficit next year. With continuing reports of the government not paying its bills, it hopes to borrow $300 mn more domestically and $700 mn more externally. It hopes the foreign aid of $340 mn will more than fill the remaining gap. Meanwhile government formally admitted that the debt in 2016 was 102% of GDP. (Zitamar, O Pais Economico 22 Sept)
The government plan and budget was approved at a special Council of Ministers meeting on 21 September, moved forward to avoid the Frelimo Congress last week. The full documents will be submitted to parliament this week and only basic details were released. Inflation is expected to fall from 15.5% this year to 11.9% next year, and GNP growth should rise to 5.3% in 2018.
Council of Ministers spokesperson Ana Comoana said that expectations of donor support were based on donors statements that have been “unanimous in recognizing what has been the great worth of the government of Mozambique.”
Meanwhile the Ministry of Economics and Finance finally released the 2016 debt figures, which showed a substantial increase in debt in 2016, making Mozambique debt distressed. Debt jumped to 102% of GDP compared to 73% in 2015. This was partly due to the devaluation of the metical, but also due to major new borrowing – $600 mn from abroad and MT 19 billion ($260 mn) domestically.
By Joseph Hanlon
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