Little hope for Manuel de Araujo - Hanlon
File photo: TVM
Mozambican Prime Minister Carlos Agostinho do Rosário said yesterday that the country’s peaceful environment, combined with fiscal and monetary policy measures and actions to encourage increased production, have been influencing the recovery of the national economy.
The economic recovery, according to the prime minister, is also expected to increase global demand and improve export prices on the international market.
Speaking in parliament yesterday, Carlos do Rosário stressed that “progress in the peace process and the results we have achieved in the different sectors of the economy have contributed to an increase in exports, exchange rate stability and the slowdown of inflation.”
According to the prime minister, inflation has fallen 9 percent from the 22 percent registered in April last year.
“It is our belief that, with the current pace of slowdown, we can end the year with average annual inflation below 11.9 percent, as foreseen in the Economic and Social Plan (PES),” he said.
According to the prime minister, this trend creates a space for the interest rate in the banking system to continue to reduce, which will increasingly improve the conditions for access to financing, in particular by small and medium-sized enterprises responsible for generating employment and income for many Mozambicans.
“The national currency remains stable and in line with the macroeconomic fundamentals of our economy, and exports have increased, putting the country’s net international reserves at levels sufficient to cushion any possible shocks in the economy,” he said.
The prime minister also reaffirmed that the government remains “completely willing to cooperate with and support the organs of justice” in its investigations into what has become known as the hidden debts affair. “We must continue to trust our institutions of justice and await the outcome of this process.”
Carlos do Rosário said that the government’s strategy was to get the country’s public debt within sustainable parameters, which would involves restructuring to free resources to finance priority actions of the government’s Five-Year Programme.
In this context, the government has been maintaining a permanent dialogue with partners and creditors, in order to establish a favourable environment for the country to have access to financial resources in the international market on favourable terms and conditions.