Mozambique’s expected to post budget deficit 10.1 pct and GDP growth of 6.9 pct in 2014, BMI says

4 March 2014

Mozambique’s budget deficit is expected to reach 101 percent this year and the economy is expected to post growth of 6.9 percent, less than the initial estimate of 8.1 percent, the Business Monitor International (BMI) consultancy said.

“We lowered the growth projection for the Mozambican economy this year, from 8.1 percent to 6.9 percent, due to signs that political instability is affecting private consumption,” the British consultancy said in its report on Mozambique’s business climate.

“This review and the fact that we believe growth will accelerate once again in 2015 reflect the expectation that the negative effects will neither be significant nor prolonged,” the analysts said, forecasting that the central bank will keep its benchmark interest rate at 8.25 percent throughout the year. (macauhub)