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“Mozambique’s economy to grow by 8.3 pct in 2014,” IMF says

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Mozambique’s gross domestic product (GDP) is expected to grow this year by 8.3 percent and slow down in 2015 to 7.9 percent, according to projections from the International Monetary Fund (IMF) in its World Economic Outlook published Tuesday in Washington.

The document did not provide an analysis for these figures, but in mid-March, at a joint conference with the IMF’s programmatic evaluation mission, a revision of the State Budget following the IMF’s recommendations was announced.

Noting the Mozambican government’s need to contain the country’s public debt, which has been rising due to increasing use of loans to build infrastructure, the head of the IMF mission, Doris Ross, noted some risks of the “expansionist model” of the 2014 State Budget.

“We expect the total deficit after donations to rise from 3 percent of GDP, in 2013, to 9.5 percent of GDP in 2014, after taking into account extraordinary revenues of 4 percent of GDP in 2013, and of 2.9 percent of GDP in 2014,” Ross said.

“This level of deficit is not sustainable in the mid-term, particularly because it is not very likely that the extraordinary revenue will occur again,” Ross said at the time.

In 2013 Mozambique’s economy posted growth of 7.1 percent. 

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