World Bank says Mozambican economy shows positive signs – Watch

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World Bank says Mozambican economy shows positive signs – Watch

12:00 CAT | 27 Jul 2017

TVM

World Bank Executive Director Andrew Bvumbe said in Maputo on Monday that the Mozambican economy was showing positive signs, but that the country must focus on fiscal consolidation to make growth sustainable.

Speaking at a press conference at the beginning of his two-day visit to Mozambique, Bvumbe said that Mozambique’s gross domestic product could grow 4.5 percent in 2017, after posting its lowest performance in recent years in 2016 with only 3.7 percent.

“The country’s macroeconomy is beginning to hold up. We hope it will be sustainable, anchored in necessary economic reforms in key sectors,” said Bvumbe, who is Zimbabwean.

Bvumbe added that the Mozambican authorities had been able to curb metical devaluation, lower inflation and strengthen net international reserves.

Also Read: Bureaucracy one of the main obstacles in Mozambique’s business environment – WB

“The economy is stabilising, inflation is going down, interest rates have stabilised and net international reserves have been consolidating,” he said.

Bvumbe said that the sustainability of the Mozambican economy required the country to invest in reforms, notably in taxation, creating a business-friendly environment, diversifying the economy and supporting the private sector.

Bvumbe announced that his institution would spend US$1.2 billion in Mozambique in the next three years financing agriculture, health, education and infrastructure projects.

Also Read: Resumption of support for Mozambique depends on debt sustainability – World Bank

Source: Lusa