Mozambique: World Bank expects 3.3% growth, less than government, IMF

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Mozambique: World Bank expects 3.3% growth, less than government, IMF

4:16 CAT | 31 Oct 2018

The World Bank expects the economy of Mozambique to grow 3.3% this year, lower than the estimates from the government (4.1%) and the International Monetary Fund (IMF) of 3.5%.

“The growth of Mozambique’s GDP is expected to reach a slightly lower rate of 3.3%, in 2018” compared to 3.7% in 2017 and 3.8% in 2016, according to the document on the country’s economy published on Wednesday in the Maputo.

The World Bank forecasts a 3.5% growth in 2019 and 4.1% in 2020 and can later carry on “at a faster pace with the development of liquefied natural gas projects.”

Currently, “the economy continues to face the slowdown that followed the debt crisis in 2016.”

It also said that private demand, “one of the main drivers of growth in the years preceding the economic slowdown, has declined significantly.”

The World Bank also said there are risks of price drops in the main export raw materials (coal, aluminium and tobacco) and an increase in imports, if the consumption is resumed, after the retraction reaches the maximum.

At the beginning of the month, the government of Mozambique estimated 4.1% growth, still above IMF’s forecasts, which anticipate an economic expansion of 3.5% this year and 4% in 2019.