Mozambique: IMF expects slowdown of economic growth in 2009 to 5.5 pct

16 February 2009

Maputo, Mozambique, 16 Feb – The Mozambican economy is this year expected to grow by 5.5 percent and 5.4 percent in 2010, according to newly lowered projections from the International Monetary Fund (IMF), presented in Maputo by the resident representative in Mozambique.

Felix Fischer said the likely slowdown of the Mozambican economy was due to the “impact of the world economic crisis,” which “will result in a reduction of investments,” and “increase uncertainty about the provision of official aid to development.”

Last week, the Mozambican government had confirmed a slowing of the national economy in 2008, admitting that growth had been of 6.5 percent and not 7 percent as estimated.

Fischer also forecast that retraction of investment would be seen mainly in relation to countries that were forced to channel large volumes of resources towards their own financial bail out plans.

Fischer predicted, however, that the impact of the deceleration would also depend on the exchange rate of the Mozambican currency and that it would be felt in an uneven way. (macauhub)