ADB projects economic growth of 7.5 pct for Mozambique in 2015

27 May 2015

Mozambique’s economy is expected to grow 7.5 percent in 2015, which as in previous years will be bolstered by foreign public and private investments, according to a report by the African Development Bank (ADB) issued recently.

The ADB forecast is in line with that of the Mozambican authorities, but is more optimistic than the one published by the International Monetary Fund (IMF), which expects economic growth of 7 percent.

According to the organisation, the sectors that will benefit from more favourable investments are those related to construction, business and financial services, transport and communications, and mining.

In the short term, the ADB noted, the country faces the challenge of keeping its economy attractive to attract foreign investment, whilst also ensuring fiscal and debt sustainability.

In terms of the latter, the ADB said that, due to the high fiscal deficit recorded in recent years, which was 10 percent of gross domestic product (GDP) in 2014, public debt reached 56.8 percent of GDP, and it therefore expects gradual fiscal consolidation during this and next year.

In the African Economic Outlook – 2015 report, published this week, the bank estimated economic growth for the continent of 4.5 percent in 2015, up 0.6 percentage points on 2014 and 1 percentage on 2013.

The sub-Saharan African region, which includes Mozambique, is expected to post economic growth of 4.6 percent.

Overall, foreign investment should reach US$73.5 billion, being partly supported by capital from China, India and South Africa. (macauhub/MZ)