World Bank and UN foresee modest economic recovery in Mozambique

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World Bank and UN foresee modest economic recovery in Mozambique

1:37 CAT | 28 Jan 2020

Maputo. [File photo: Macauhub]

Pending the emergence of economic growth figures for the last quarter of 2019 and the new government’s forecasts for gross domestic product (GDP) in 2020, the World Bank and the United Nations expect the economy to recover in Mozambique in a modest degree.

Against all expectations, the Mozambican economy continues to decelerate, and it is not yet known whether GDP in 2019 will even reach the 2.5 percent expected by the government of Filipe Nyusi. The Mozambican economy grew 2.5 percent in the first quarter of last year, 2.3 percent in the second quarter and 2 percent in the third.

At the beginning of the year, the World Bank forecast that Mozambique would grow only 3.7 percent, in line with the overall reduction in its economic growth forecasts, because of slower than expected recovery in trade and investment, despite milder trade tensions between the United States of America and China.

Meanwhile, on January 16, the United Nations, in its report on the World Economic Situation and Prospects, forecast that, although per capita income would stagnate or decrease in about 20 percent of countries, GDP growth in Mozambique could reach the 5.5 percent projected by the International Monetary Fund in November 2018.

This would be the highest economic growth among Southern African countries, although still below the Government’s expectations that Mozambican GDP could grow 6.5 percent this year.

By Adérito Caldeira

Source: A Verdade