Mozambique to grow 3.7% this year and 4.3% in 2020 – FocusEconomics

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Mozambique to grow 3.7% this year and 4.3% in 2020 – FocusEconomics

2:39 CAT | 21 Feb 2019

FocusEconomics has revised its growth forecast for Mozambique up slightly by 0.1 percentage points, now anticipating a 3.7% growth for this year, accelerating to 4.3% in 2020.

“Growth is expected to accelerate this year, aided by the gradual improvement in monetary conditions and investment flows, particularly for megaprojects in liquefied natural gas,” the FocusEconomics analysts write.

FocusEconomics forecasts a growth of 3.7% for this year and an acceleration to 4.3% in 2020, but warns that “the strong weight of debt will continue to overshadow the prospects of economic developments”.

In the last quarter of last year, “the economy seems to have gained momentum, which followed a modest third quarter, albeit with a notable growth in production in the extractive industry”.

Inflation rose to 3.8% in January from 3.5% in December, analysts say, expecting a rise in prices of 5.7% this year and 5.9% next.

Source: Lusa