Mozambique prepares downward revision of 2018 GDP growth – FinMin

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Mozambique prepares downward revision of 2018 GDP growth – FinMin

12:44 CAT | 24 Apr 2018

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Mozambique’s finance minister has admitted he is reviewing the 5.3 percent growth forecast for the economy this year downward to an unstated figure, but one that will still be above the 3 percent forecast by the IMF.

“We admit that we might revise the growth forecast for this year, but not to the IMF levels, which are quite conservative,” Adriano Maleiane said in an interview with Lusa on the sidelines of the IMF Spring Meetings in Washington.

At the root of this downward revision is, for example, “the belief that Vale is reducing its exports projections due to problems not foreseen at the time of our forecasts”, the minister explained, noting, however, that “the projection of 5.3 percent [of growth for this year] is realistic, but it is also a mobilising factor, something that the whole society should continue to think about”.

For 2017, in which the IMF estimates that the Mozambican economy has grown only 2.9 percent, Maleiane says the final figure will be known by the end of next month, but it is most likely to be between 3.4 and 4 percent.

“The actual results of the official statistical institute indicate that the country grew 3.7 percent, and if there is statistical regularity, when the definitive data come out in May, there is a deviation 0.3 points up or down, so this is the starting point for 2018,” he said.

“It is good that there is someone with a pessimistic view to give us the strength to do a little more, because the economy has all the conditions in place to pick up. Mozambique cannot live with hands outstretched – it does not make sense,” Maleinae says.

It is true, he admitted, that “the cut in [international financial] support made a difference, but it is not the end of the world. It may even be the way we begin to realise that we have to provide for life, and not live on the basis of support that, being so important, will go on maintaining our eternal dependency”.

Source: Lusa