Mozambican economy expected to see slight recovery in 2010

7 December 2009

Maputo, Mozambique, 7 Dec – Mozambique’s economy may see a slight recovery in 2010 with the growth rate rising to 6.3 percent, the Mozambican finance minister, Manuel Chang said, cited by Mozambican newspaper Notícias.

Despite this, the paper said, projected growth for 2010 will be lower than levels reached up to 2007, when average annual economic growth was 7.8 percent.

This year, the Government does not expect to see growth of over 6,1 percent, as compared to 6.7 percent seen last year.

The finance minister said that economic recovery prospects worldwide were a ray of hope for Mozambique, as well as for the rest of Sub-Saharan Africa, whose economy will see growth acceleration from 1.1 percent in 2009, to a projected figure of 4.1 percent in 2010.

This surge in the growth of Sub-Saharan Africa follows an average slowdown of 5.5 percent in 2008, as compared to average growth of 6.4 percent in the five years up to 2007.

Chang said that a sustained recovery would require the removal of tax incentives applied during the crisis period, in order to ensure growth and sustainability of public accounts, minimising inflationary pressure.

The minister also said that with a return to desired growth rates, governments should direct their additional gains to collecting tax revenues for promotion of the diversification of economic structures and drive expansion of domestic and regional markets. (macauhub)