Mozambique: Central bank forecasts 2019 inflation to rise to 6% or 7%

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Mozambique: Central bank forecasts 2019 inflation to rise to 6% or 7%

8:23 CAT | 26 Feb 2019

File photo: Lusa

Mozambique’s central bank forecasts inflation in 2019 to rise to 6% and 7%, above the rate of 3.5% registered at the end of 2018, according to a statement Lusa had access to on Tuesday.

The central bank’s projections continue to point to annual inflation in line with the objective of foreseeable low inflation maintained at around 6% or 7% in the final quarter of 2019, the note said.

The Bank of Mozambique said that in terms of economic activity, it foresees a “slight acceleration” in terms of Gross Domestic Product in the fourth quarter of 2018 and 2019, sustained by an improvement in internal demand.

The main financial international institutions estimate the Mozambican economy to have grown 3.5% in 2018.

Among the country’s main uncertainties for 2019, the central bank highlighted the impact of the electoral sycle, decentralisation of reforms and the fiscal consolidation measures underway.

There are doubts concerning the prices of liquid fuels and other goods and services, as well as the impact of natural disasters, including excessive rain in the central and northern regions and drought in the southern region.

Source: Lusa