Mozambique: Country to have favorable economic climate in 2008, IMF

13 November 2007

Maputo, Mozambique, 13 Nov – Mozambique’s economy is to benefit from a favorable climate in 2008 despite a projected balance of trade deficit due to the price of fuel, an IMF official said in Maputo Monday.

On giving a brief assessment of the performance of the economy, from January to September this year, Jean Clément, the deputy director of the IMF Africa Department said that Mozambique had robust economic growth, adding that for 2007 growth of some 7 percent was expected, which would be one of the highest levels in Africa.

Clément also said that optimism for 2008 was driven by the fact that, in line with the Plan of Action for Reduction of Absolute Poverty (PARPA) II, the government had agreed to move ahead with the second stage of reforms, in order to improve the business climate.

Speaking to journalists in Maputo, Clément said that another factor that would contribute to the positive performance of the economy in 2008 was to do with boosting management of natural resources, namely due to the new Mining and Oil Laws which are being drawn up.

The importance of the two laws is due to future mining and oil developments being regulated by a new legal framework, which will generate more revenue for the State Budget, he noted. (macauhub)