IMF says Mozambican economy remains “dynamic”

1 November 2013

The Mozambican economy remains dynamic and has quickly recovered from serious floods at the beginning of the year, said Doris Ross, the head of an International Monetary Fund (IMF) mission that visited Mozambique between 16 and 30 October.

Cited by daily newspaper Notícias, Ross said that the economy was expected to post growth of 7 percent this year, and that this would increase to 8.3 percent in 2014.

Doris Ross also said that after inflation increased in the first quarter of the year, price pressure reduced due to recovery of agricultural production after the floods and appreciation of the metical against the South African rand.

As a result, inflation at the end of the year is likely to remain at below 5 or 6 percent, which is the Bank of Mozambique’s mid-term target.

The trade deficit is this year expected to total 43 percent of GDP due to an increase in imports related to large investment projects and will mainly be funded by foreign direct investment (FDI). (macauhub)