Mozambique capable of greater growth in the mid-term, IMF says

27 June 2011

Maputo, Mozambique, 27 June – Mozambique is well prepared for more growth in the mid-term as a result of increase production of natural resources and public investment in infrastructure, according to the assistant director-general and interim chair of the board of the International Monetary Fund.

Speaking after conclusion of the discussions that ended last week with the approval of the second three-year agreement with Mozambique, under the terms of the Policy Support Instrument (PSI), Nemat Shafik, cited by Mozambican daily newspaper Notícias said that the key priority of macroeconomic policy in the short term was combating inflation.

The board of the IMF recently concluded its second evaluation of Mozambique’s economic programme, under the terms of the PSI and, at the end, provided a dispensation for not meeting the criteria of quantitative evaluation of the monetary base.

At the same time, the Board approved the second three-year agreement with Mozambique under the terms of the PSI.

The PSI was designed for low income nations that perhaps do not need – or want – to make use of IMF assistance but which are still interested in benefitting from the services provided by the organisation in terms of advice, control and policy endorsement.

Shafik said that Mozambique’s economic performance an outlook remained solid, and the economy, supported by correct macroeconomic policies, had shown resistance to the world economic crisis. (macauhub)