Mozambican government forecasts average GDP growth of 5.5% over the next 5 years

Login

Register

http://www.clubofmozambique.com/

Mozambican government forecasts average GDP growth of 5.5% over the next 5 years

1:30 CAT | 19 Mar 2020

File photo: AFP

The Mozambican government expects the country’s economy to reach 2024 with an average growth rate of 5.5%, against 2.2% in 2019, according to the draft proposal of the government’s Five-Year Plan ( PQG) consulted today by Lusa.

The PQG draft will be the main document debated by the newly sworn-in parliament (Assembly of the Republic) in its first ordinary session, which starts next Wednesday, 25th March.

The government in the document sets a target average gross domestic product (GDP) growth rate of 5.5% between 2020 and 2024, and average annual inflation of 5% in the coming years against 3.5% in 2019.

The Frelimo executive commits in the PQG to reducing the volume of debt from the current 69.80% of GDP to less than 40% by 2024.

But other financial institutions warn that the country’s current volume of debt is much higher. Rating agency Fitch expected in a recent analysis that the public debt-to-GDP ratio would decline from 101% in 2019, to 93.9% of GDP this year.

Other numbers in the government’s Five-Year Plan indicate that the capacity to cover imports is expected to drop from 7.1 months to 6.0 months in 2024, and the state’s revenue to increase from 23.90% of the GDP in 2019 to 25.70% in 2024.

According to the PQG, the government also wants to reduce from three to one the number of days needed to obtain a business license, within the scope of reducing bureaucracy in the business environment.

Source: Lusa