Mozambique nears debt-restructuring deal with Russia’s VTB, IMF says
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