Mozambique: IMF says country’s growth is “strong and robust”

23 November 2007

Maputo, Mozambique, 23 Nov – The International Monetary Fund (IMF) is satisfied with “the strong and robust growth” of the Mozambican economy this year, the assistant-director of the IMF for Africa, Jean Clement said Thursday in Maputo.

Following a visit to Mozambique, for an assessment of the economy and discussions with the authorities about future support, Clement concluded that the positive performance of the country’s economy was determined by “higher than expected tax revenues.”

Due to a “prudent taxation and monetary policy,” inflation is also expected to show a good performance, remaining at a single-digit level, as has been the case over the last few years, Clement said.

According to the assistant-director for Africa, the government’s reforms were successful in terms of boosting public expenditure, by applying the State Financial Administration System (SISTAFE).

The Mozambican authorities’ strategy to reduce the cost of doing business in the country and widen is tax base was also reaping rewards, the IMF said. (macauhub)