Government says Mozambique could grow 6% to 7% in 2019

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Government says Mozambique could grow 6% to 7% in 2019

10:50 CAT | 02 Nov 2017

Lusa/Fim

Prime Minister of Mozambique Carlos Agostinho do Rosario said on Wednesday in Maputo that the country is in a position to grow between 6 percent and 7 percent in 2019, compared with 5.5 percent forecast for 2018.

“The rate of economic growth makes us believe that, starting in 2019, our country will grow at rates of 6 percent to 7 percent,” Agostinho do Rosario said during questions for members of the government in parliament.

Mozambique has been experiencing better macro-economic stability, and the gross domestic product will grow 4.7 percent this year and 5.3 percent in 2018.

“The implementation of fiscal consolidation measures will allow us to direct more resources to investment in agriculture, energy, tourism and infrastructure, which will have a multiplier effect on the economy in terms of job creation and increased income”, Agostinho do Rosario pointed out.

Rosario said that the government was strengthening public finance management mechanisms and undertaking actions aimed at regaining the confidence of cooperation partners, shaken by the scandal of the discovery of over EUR 2 billion of debt backed by state the Executive guarantees between 2013 and 2014.

“We continue to take actions to strengthen trust among our partners in such a way that the private sector has easy access to financing in the international market,” the Mozambican prime minister said.

Mozambique registered lower economic growth in 2016 because of a combination of factors, aggravated by the suspension of international aid to the state budget following the discovery of the so-called hidden debts.

Donors to the budget are conditioning the resumption of aid on agreement with the International Monetary Fund, which says it will only resume financial assistance after full disclosure of the audit report on public debt.

Source: PMA // PMC