Mozambican economy expected to grow 7.5 pct in 2012 and inflation rate will be 7.2 pct

21 December 2011

Maputo, Mozambique, 21 Dec – Mozambique in 2012 is expected to have average annual inflation of 7.2 percent, gross domestic product (GDP) growth of 7.5 percent and gross foreign reserves to cover 4.6 months of imports of goods and service, according to projections from the Bank of Mozambique.

Speaking Monday at the closing ceremony of the 2011 financial year, the governor of the Bank of Mozambique, Ernesto Gove, said that in order for this to happen the central bank would have to make use of instruments available on the money and foreign exchange markets along with persuasive and banking supervision activities targeted at credit institutions.

Cited by Mozambican news agency AIM, Gove noted that the Bank of Mozambique, in 2012, faced the challenge of continuing to improve monetary policy management, boosting its supervisory and response capabilities with a view to minimising risks and uncertainties brought about by the economic climate and increase the effectiveness of the measures it has implemented. (macauhub)