President Nyusi revises Mozambique’s annual growth forecast to between 6 and 7 percent

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President Nyusi revises Mozambique’s annual growth forecast to between 6 and 7 percent

1:46 CAT | 18 May 2016

Speaking yesterday to the Mozambique-China Business Forum in Jiangsu province on his state visit to China, President Filipe Nyusi of Mozambique yesterday revised the country’s 2016 economic growth forecast down to “between 6 and 7 percent”, below the value set in the state budget, but above most international forecasts.

The Mozambican head of state justified the revision with the “occurrence of exogenous shocks” and the weak recovery of the world economy. The state budget had predicted GDP growth of 7.8 percent.

Meanwhile, the decline in the price of raw materials has led to a 35 percent depreciation of the local currency against the US dollar, while foreign exchange reserves fell by 25 percent last year, and the recent disclosure of loans of US$1.4 billion not recorded in public accounts or reported to the International Monetary Fund has discredited the country with financial markets and international donors.

In his speech, President Nyusi celebrated Mozambique’s economic ties with the Asian economic giant.

“We are pleased to say that currently, China is a strategic partner on the economic front, through investment and trade,” he said.

Since 2012, China has increased its Mozambique funding by 160 percent, becoming the country’s biggest bilateral creditor last year, according to figures cited by the Mozambican press.

Filipe Nyusi today meets Chinese President Xi Jinping in the Great Hall of the People in Beijing.

Source: Diário Digital / Lusa