Update: Mozambique debt audit says $500 million in loans unaccounted for
The spokesman of Mozambique’s Ministry of Finance and Economy, Rogerio Nkomo says his country’s economy grew 18 percent in the first quarter of this year.In an interview with APA on Wednesday, Nkomo said his country is on track to achieve the annual target of 5.5 percent in
“The Mozambican government makes a positive assessment of the economic performance of the first quarter of this year despite the suspension of direct support to the state budget, reduction in the flow of foreign investment and imports and exports”, Nkomo said.
He added that the cessation of military hostilities boosted the economy, focusing on agriculture, fishing and construction.
According to the official, the improvement in revenue collection also boosted the economy during the period under review when about 80 percent of state spending was financed with domestic resources, while in previous years, capacity was below fifty percent.
According to Nkomo, the economy growth will also be supported by improved confidence in the relationship with the international partners, strengthened financial transparency and a favourable environment for the increase of foreign direct investment.
“Inflation in 2017 is expected to be 15.5 percent, while goods exports are expected to yield $3.463 billion and net international reserves should be sufficient to cover 3.1 months of imports of goods and services, excluding mega-projects”, Nkomo said.
He attributed this expectation of recovery to the positive performance of the extractive industry, electricity and gas, agriculture, manufacturing, fisheries, trade, transport and storage, health and education.Source: APA