Mozambique: Optimistic forecasts for 2017 economic growth – Noticias report

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Mozambique: Optimistic forecasts for 2017 economic growth – Noticias report

12:19 CAT | 28 Nov 2016

Noticias (File photo)

The growth of Mozambique’s gross domestic product is expected to reach 5.5 percent in 2017, against a forecast of 3.4 percent by the end of this year, reports Noticias today.

This expectation of recovery in economic growth is fuelled by the positive performance of the extractive industry, electricity and gas, agriculture, manufacturing, fisheries, trade, transport and storage, health and education.

According to the Social and Economic Plan (PES-2017) proposal submitted by the government to the Assembly of the Republic, the economy will also be supported by the recovery of confidence in the relationship with the international partners, strengthening financial transparency and a favourable environment for the increase of foreign direct investment.

Inflation in 2017 is expected to be 15.5 percent, while goods exports are expected to yield US$3.463 billion and net international reserves should be sufficient to cover 3.1 months of imports of goods and services, excluding mega-projects.

Some 282,000 new jobs are planned. In industry and commerce, 1,460 entrepreneurs and small and medium-sized enterprises will be assisted and 40 financed in dealing with export, agricultural marketing, rural stores, fishing, aquaculture, poultry farming and processing, besides storing 18,000 tons of cereals in silo complexes.

The executive recognises that the maintenance of peace, political and economic stability and continuous and structured dialogue with all political forces and development actors are critical factors in achieving the objectives laid out in PES-2017.

According to the PES proposal, it is only through dialogue that it will be possible to consolidate and preserve peace, political stability and social cohesion among Mozambicans and the continuous implementation of actions that increase the quality of services in the national financial and exchange system. The preservation of the value of the metical and the macro-economic stability are primary objectives.

The government’s 2017 priority will be to increase domestic food production to address the agricultural production deficit that was negatively influenced in 2016 by natural disasters.

The introduction of agrarian service centres, the effective use of irrigation, the release of quality seeds and increasing technical assistance to producers are considered decisive in increasing production and productivity.

Source: Noticias