Mozambique to grow 4% in 2018 – EIU

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Mozambique to grow 4% in 2018 – EIU

11:33 CAT | 17 Oct 2017

The Economist Intelligence Unit (EIU) predicts that Mozambique’s economy will grow 4 percent next year, close to the economic expansion expected this year, essentially on the basis of growth in the natural mineral resources sector.

“We expect economic growth, after having accelerated slightly in 2017 on the basis of strong growth in the mineral sector, to slow down to 4 percent in 2018,” experts at the economic analysis unit of the British magazine The Economist write.

“This reflects the slower expansion of the mineral sector in a context of reduced output growth in the country’s coal mines, which will begin to stabilise after a fairly rapid increase last year.”

In the commentary, to which Lusa has access, coal is said to be the main engine of growth for the country. “Coal production, together with increased production of graphite and precious stones, will remain the main engine of growth in 2018,” the EIU writes.

However, analysts warn that “political uncertainty could prolong the decline in investment, and still-limited liquidity conditions and public expenditure could continue to impact domestic demand”.

The International Monetary Fund expects Mozambique to grow 4.7 percent this year, recovering from 3.8 percent last year and below the IMF’s 5.3 percent forecast for 2018.

Source: Lusa