Mozambique: Economy could grow between 4% and 4.7% in 2019 – IMF

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Mozambique: Economy could grow between 4% and 4.7% in 2019 – IMF

9:30 CAT | 21 Nov 2018

In file CoM

The International Monetary Fund (IMF) has said the Mozambican economy could grow between 4% and 4.7% in 2019, above the 3.5% forecast for this year, as long as the country meets a set of conditions.

“Growth could be very high if the payment of arrears continues and takes on more weight in the following months, Ari Aisen, the IMF’s representative in Mozambique, said.

Ari.file_.imf_.moz_ — *Ari Aisen. File photo: Lusa*

He added that payments to state companies would mean an “important injection to the private sector” and would benefit growth.

Other factors he mentioned include hydrocarbon research and production underway in the north of Mozambique, continuing peace efforts, relaxing monetary policy, and fiscal consolidation.

“If all these conditions are met, we think that growth could be higher in 2019 than it was in 2018,” he said.

The IMF suspended financial aid to Mozambique in 2016 following the discovery of debts secretly endorsed by the previous Mozambican government on behalf of public companies linked to fishing and maritime safety.

Source: Lusa