Cost of living sky-rockets in Mozambique

Login

Register

http://www.clubofmozambique.com/

Cost of living sky-rockets in Mozambique

12:05 CAT | 18 Apr 2016

The cost of living in Mozambique is worsening daily, with inflation reaching an annual rate of 12 percent last month. With drought affecting the entire southern part of the country, there is little chance of the rise in food prices slowing down.

This situation comes on top of the current political and military tension.

The US$850 million in Ematum liabilities transformed into sovereign debt and revelations by the Wall Street Journal of the existence of a second undisclosed loan of US$787 million have increased the country’s debt by 25 percent, a further contribution to the rising cost of living, according to economist Alfredo Mondlane.

Economist Edilson Munguambe however has a more optimistic view, saying that if the state secures new revenue the debt can be amortized without substantial cost to the public.

Recently, the Mozambican government said it may revise the yearly GDP target of 7 percent downwards because of the domestic and international economic situation, a view echoed by the IMF and other independent entities.

Source: Voa Portugues