Mozambique: 2008 monetary policy aims to ensure economic growth of 7 pct

21 December 2007

Maputo, Mozambique, 21 Dec – Mozambique’s economic policy for 2008 will be designed to contribute to the government’s macroeconomic goals of growth of 7 percent and single-figure inflation, the governor of the country’s central bank said Wednesday.

“Our intermediate objectives are monetary expansion of 18.1 percent and growth of credit to the economy of 21.7 percent”, said Ernesto Gove, governor of the Bank of Mozambique.

Giving an assessment of the government’s performance for this year, Gove said Mozambique’s healthy economic performance has been sustained by the sectors of electricity and water, transport and communication, and construction, which generated a considerable multiplier effect to fuel growth.

However, outside shocks suffered by the economy have had negative repercussions on the consumer price index in the city of Maputo, meaning usual periods of falling inflation have not compensated for normal price hikes in the final quarter, noted Gove.

There were a number of positive events in 2007, including the successful transfer of ownership to Maputo of the HCB hydroelectric dam, added Mozambique’s central bank chief.

“In the context of Mozambique’s relations with its international cooperation partners, 2007 was rich in events. Good references have been given again by the IMF and World Bank, which have approved a new program with our government, the Policy Support Instrument, on economic performance and the quality of macroeconomic management in the country,” said Gove. (macauhub)