IMF praises prudent monetary and tax policies of Mozambican government

20 October 2011

Maputo, Mozambique, 20 Oct – The good performance of the Mozambican economy is the result of the government’s “prudent” monetary and tax policies, according to a mission of the International Monetary Fund (IMF), which concluded its work Wednesday in Maputo.

This situation, the mission’s report said, “reflects favourable developments in international prices, good crops, a strong national currency and, more importantly, the prudent tax and monetary policies,” of the Mozambican government.

The report, which was signed by Johannes Mueller, the head of the IMF mission that was in Mozambique from 5 October, said that an “acceleration of large projects and traditional exports,” in the country had contributed to a stronger-than-expected position in terms of foreign reserves.

For the years of, “2012 and the following, the mission agrees with the intentions of the government to promote public investment, social development and financial improvement to increase economic activity and make it possible for more Mozambicans to benefit from economic growth,” the report said.

The Mozambican economy is this year expected to post growth of 7.5 percent and reduce the 2010 inflation rate of 16.5 percent to around half. (macauhub)