EIU sees Mozambique growing 1% this year, 5% in 2020

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EIU sees Mozambique growing 1% this year, 5% in 2020

4:27 CAT | 20 Nov 2019

The Economist Intelligence Unit (EIU) consultancy has improved its forecast for Mozambique’s economy from the recession estimate of 0.5%, and now expects a growth of 1% this year and 5% by 2020.

“Cyclones in early 2019 wreaked havoc on infrastructure, buildings, ports and agriculture, causing growth to slow to just 1% this year, driven mainly by reconstruction efforts,” experts at the analysis unit in The Economist write.

“The economy will catch its breath in 2020, with growth of 4.8%, driven by reconstruction efforts through increased construction activity and monetary policy,” the note sent to customers, which Lusa has seen, adds.

For the following two years, the EIU foresees a strengthening of economic expansion, with average growth for 2021 and 2022 of 6.5% and the “gas industry being one of the major drivers of economic growth”, notably through investments by oil companies involved in natural gas development in the centre and north of the country.

The EIU has been improving its forecasts for Mozambique since June, when it was forecasting a recession of 2.2% this year, amended to just a 0.5% contraction in August, and now to 1% growth.

Source: Lusa