IMF says Mozambique and Angola will grow less in 2016

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IMF says Mozambique and Angola will grow less in 2016

10:49 CAT | 13 Apr 2016

AIM (File photo) IMF's Christine Lagarde delivers her opening seech at the Africa Rising conference in Maputo (April 29 2014 ). Former president Armando Gueza (left) and former minister of Finance Manuel Chang (centre) listening.

Falling oil and raw materials prices will mean slower growth rates in Mozambique and Angola, an IMF report on the World Economic Perspectives released yesterday in Washington says.

Mozambique is expected to post annual growth of 6 percent, which the IMF notes will be the country’s lowest rate in 20 years, as a result of lower commodity prices and delays in the exploitation of natural resources, mainly natural gas.

The country will still grow at double the sub-Saharan Africa average of 3 percent this year, the entire region being affected by lower raw material prices.

The Angolan economy will grow only 2.5 percent in 2016 but should increase slightly to 2.7 percent next year, the IMF says. This year’s growth in Angola is only fractionally higher than its 20-year low, again primarily because of lower oil prices, and well below recent averages of around 5 percent.

Global growth

Worldwide, the economy should grow 3.2 percent this year and speed up to 3.5 percent by 2017, but these projections are already more pessimistic than the 3.4 and 3.6 percent predictions presented in January.

Among the big emerging economies, the IMF predicts that China’s growth rate will slow to 6.5 percent this year and to 6.2 percent next year.

India is running against the tide and is expected to register 7.5 percent growth in both years, after growing 7.3 percent in 2015.

Latin American and Caribbean economies are expected to shrink 0.5 percent this year but grow 1.5 percent in 2017.

The report expects developed economies to grow by 1.9 percent in 2016 and 2 percent in 2017, values which were again more optimistic in January.

Source: Voa Portugues