Mozambique government approves draft state budget of EUR 5.1 billion for 2018
Fishermen gather seine nets from the water on the Ilha de Mafamede, Mozambique. File photo: WWF-US / James Morgan
The African Development Bank said on Tuesday that Mozambique’s main challenges were the result of constraints due to the high government debt and said the government should invest in the ‘blue economy’ and agri-business.
In its report on Southern Africa Economic Outlook, the analysts noted that the recovery from the crisis in this region reveals great diversity in growth patterns, in the responses to the external shocks and the internal economic conditions.
It said that despite Mozambique’s increasing debt, which went up from 3.8% in 2016 to 4.7% last year, was driven by ore exports and it is expected to rise even more this year to 5.3%.
Agriculture also played an important role, the text said and that the public deficit remains high and the sovereign debt in ‘in distress’ that could have a negative impact on the country’s growth.Source: Lusa