Mozambique: Internal borrowing on the rise - Standard Bank
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The International Monetary Fund (IMF) projects economic growth for Mozambique between 4 and 4.7 percent next year, according to the Fund’s resident Mozambican representative.
Speaking on the sidelines of a lecture promoted by the Polytechnic University’s School of Higher Studies and Business (ESAEN) under the theme “The International Economic Environment and Potential Impacts on Emerging Economies and Mozambique”, Ari Aisen said the performance of the Mozambican economy in 2019 would depend in part on the final investment decisions of gas sector companies involved in Rovuma basin projects in Cabo Delgado.
Cited by the electronic newspaper “Carta”, Aisen said that, in addition, payment to suppliers and continued cautious relaxation of a monetary policy could increase credit, and the maintenance of peace would remain a central element in the country’s economic growth prospects.
Final investment decisions, Aisen argued, would signal Mozambique’s potential and could catapult the growth of the economy to 4.7 percent, but he warned of external risks to the economies of sub-Saharan Africa, such as the prices of coal and aluminium, which are expected to decline in the international market.
He also pointed to climatic factors that could put pressure on fiscal and economic policy and recommended strict fiscal discipline.
“We recommend fiscal discipline to avoid depreciation and currency inflation, with gross domestic product (GDP) registering a rise of 3.5 points in 2018 to 4.7 percent as a projection in 2019,” Aisen said.
Inflation registered a steady 6.5 percent in 2018 and is projected to fall to 5.5 percentage points in 2019. The exchange rate, according to Aisen, will remain stable.
Speaking after the lecture, Rector of the Polytechnic University Narciso Matos said that he had drawn several conclusions from the presentation made by the IMF representative in Mozambique, particularly regarding the projections for the 2019 economic year.
Matos explained that the lecture was part of the new cycle aimed at informing students at the country’s largest private university, along with faculty and guests, about the dynamics of the national economy and its management.Source: Folha de Maputo
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