Mozambique leads economic growth forecasts in the PALOP countries

14 April 2016

Mozambique is expected be the Portuguese-speaking African country (PALOP) to record the highest economic growth in the period between 2016 and 2021, the year in which the staff of the International Monetary Fund (IMF) expect a real growth rate of 38.9 percent.

In the recent “World Economic Outlook” report, for this year the IMF expects growth of 6.0 percent followed by 6.8 percent in 2017, after a growth rate of 6.3 percent in 2015.

The growth rate of 38.9 percent which is expected to be recorded in 2021 will be driven by the beginning of exploration of natural gas reserves in the Rovuma basin in northern Mozambique.

Next in the list of PALOP countries is Sao Tome and Principe, with growth rates of 5.0 percent, 5.5 percent and 6.0 percent in 2016, 2017 and 2021, and Guinea-Bissau, with 4.8 percent, 5.0 percent and 5.0 percent.

Cabo Verde (Cape Verde) appears in the penultimate place among the five Portuguese-speaking African countries, with the IMF staff forecasting economic growth rates for the archipelago of 2.9 percent, 3.5 percent and 4.0 percent in 2016, 2017 and 2021.

The IMF forecast for 2016 exceeds the figure announced a few days ago by the Cabo Verde Central Bank, which expects an economic growth rate of between 1.5 percent and 2.5 percent.

In last place among the Portuguese-speaking African countries is Angola with expected growth rates of 2.5 percent, 2.7 percent and 4.3 percent for the years 2016, 2017 and 2021 following growth of 3.0 percent in 2015. (macauhb/AO/CV/GW/MZ/ST)