Deficits and debt slow Mozambique’s growth to 1.6% – FocusEconomics

Login

Register

http://www.clubofmozambique.com/

Deficits and debt slow Mozambique’s growth to 1.6% – FocusEconomics

3:32 CAT | 08 Jul 2019

Maputo. [File photo: Macauhub]

The FocusEconomics consultancy has written that the increase in the deficit and the rise in public debt following cyclones Idai and Kenneth will slow Mozambique’s economic growth to 1.6% this year.

“Growth is expected to slow abruptly this year due to the devastating impact of cyclones Idai and Kenneth, the large twin deficits [in the budget and trade balances], which are expected to worsen as a result of emergency assistance and reconstruction costs, and high weight of public debt obscuring the prospect of economic development in the short term,” a note from the consultancy, which Lusa has seen, reads.

According to the July report on African economies sent to customers, Mozambique’s economy is expected to grow 1.6% this year, down 0.1 percentage points from last month’s forecast, accelerating to 4.1% next year.

According to the consultancy, the economy slowed to 2.5% growth in the first quarter, against 3% in the previous quarter, “mainly due to the slowdown in the transportation, communications and mining sectors” .

Source: Lusa