The World Bank has revised its economic growth forecast for Mozambique this year to 3.2%, a drop of 2.9 percentage points from the June 2017 forecast, according to the Global Economic Outlook report published on Wednesday in Washington.
The downward review, according to analysts, is due to the fact that debt service costs remain unsustainable, noting that the governments of Mozambique and other low-income countries “continue their efforts to raise domestic revenues and reduce public expenditure.”
The World Bank experts expect Mozambique to have grown 3.1% last year and that it will grow 3.2% this year and 3.4% in the following two years, representing a downward review of 1.7 points for 2017 and 3.3 percentage points compared to the 2020 growth forecast published in June.
The forecast for Angola this year, of 1.6%, unlike Mozambique, was increased by 0.7 percentage points from the forecast announced in June 2017.
Cabo Verde is expected to grow by 3.6% this year, a drop of 0.1 percentage points from the June 2017 forecast, and Guinea-Bissau’s economy is expected to grow by one tenth of a percentage point to 5.2%.
The World Bank report does not provide forecasts for Sao Tome and Principe.
Globally, the bank revised its global growth estimates upwards to 3.1% in 2018, while last year it forecast a 2.8% economic expansion. (macauhub)