Mozambique: Government wants "clarity" on the origin of CSOs funding
Photo: Antonio Silva / Lusa
Consultants FocusEconomics expect Mozambique’s government debt to rise from 110.4 to 113.7 percent of Gross Domestic Product (GDP) in 2022, though the economy should also grow by 3.3 percent this year and next.
“The higher prices of raw materials should help growth from here on forwards”, they said in an analysis this month of the African economies seen by Lusa.
“However, the high levels of public debt put a strong downward risk to the prospects of economic development in the short and medium term,” say the analysts, who anticipate a growing trend in public debt from 110.4 percent this year to 112.3 percent in 2019, and to 113.7 percent in 2021 and 2022.
On current growth, Focus Economics writes that “preliminary GDP data shows that the economy lost some impetus at the beginning of the year, with growth slowing to 3.2 percent in the first quarter, after growing 3 percent in last quarter of 2017”.
The Focus Economics forecasts come at a time when the government is considering proposals to restructure public debt securities, following missed payments that have put the country in default and limited access to funding from donors and international partners.
ALSO READ: Mozambique’s debt crisis: Who will pay the bill?
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