Mozambique has resisted world economic crisis well, IMF says

2 December 2010

Maputo, Mozambique, 2 Dec – A report from the International Monetary Fund (IMF) has said that Mozambican was the sub-Saharan African nation that best resisted the world economic crisis and projected good economic recovery prospects for the country over the next few years.

The summary of African economic development prospects is included in the IMF’s 2010 report on the world economy called “Economic Prospects for Sub-Saharan Africa” launched Friday in the Mozambican capital.

According to the IMF’s assessment, Africa is undergoing economic recovery, with growth for 2010 estimated at 5 percent and 5.5 percent next year.

The IMF representative in Mozambique, Victor Lledó, said that economic growth in most of the countries in the region could reach higher levels than those posted in the decade from 2000 to 2010.

“This new African elasticity can be explained by better initial conditions, specifically, higher levels of economic growth, stable prices, sustainable public debt, comfortable international reserves, seen n most of the regions in the period before the crisis,” he said.

The IMF recommended the African expansionist tax policies be moderated so that public finances could return to a sustainable trajectory and levels of public debt remain at administrable levels.

Lledó said at the time that Mozambique’s external debt was “sustainable,” as it stands at US$3.3 billion, after reaching US$6.1 billion in 1999 when “the country increased its indebtedness to bilateral and multilateral creditors.”

Lledó also said that due to the fact that its current stock was sustainable, “the country can successfully take on more foreign debt to carry out its programme to combat poverty with success, so long as payments are made by beneficiaries rather than the debt being taken on by the State.” (macauhub)