The International Monetary Fund (IMF) estimates Mozambique’s economy will grow by the equivalent of 6% of gross domestic product (GDP) in 2023 and expects it to fall to 5% this year.
According to information confirming the approval of the third assessment of the implementation of the 36-month Extended Credit Facility (ECF) program in Mozambique, consulted this Wednesday by Lusa, the IMF estimates that Mozambique’s GDP (all the wealth produced in the country) grew last year to 1.364 billion metics (19.515 million euros) and will increase to 1.475 billion metics (21.103 million euros) in 2024.
“Revenue management, public financial management, wage costs, state-owned companies and debt management are fundamental reform priorities to put fiscal policy on a stronger footing,” the same document warns, however.
Once the third tranche is approved, the total disbursement to Mozambique under the IMF’s ECF will be approximately US$273 million (€249.2 million). This ECF program was approved in May 2022 and provides total funding to Mozambique of $456 million (€416.2 million).
After inflation of 10.3% in 2022, consumer price growth fell to 3.9% in 2023 and is expected to accelerate again this year to 6%, according to the IMF.
Government revenues fell from the equivalent of 25.1% of GDP in 2021 to 24.3% in 2022 and to 24% last year, but the IMF admits they will accelerate to 25% of GDP this year. Net international reserves are expected to rise from $2.562 million (€2.345 million) at the end of 2023 to $2.590 million (€2.370 million) in December 2024.
Mozambican Economy and Finance Minister Max Tonela said in December that Mozambique’s economy would grow by 5% of GDP in 2023 and could reach 5.5% in 2024.
Inflation is projected by the government to be 7% in 2023 and 2024.
Mozambique’s government budget plans to spend 542.695 million meticais (7.765 million euros) this year, 15% more than in 2023.
The amount of debt will increase to 54.183 million metises (775.3 million euros), representing 3.5% of GDP.
Investment spending will increase to 137.297 million metikays (1.964 million euros) in 2024, equivalent to 8.9% of GDP.
According to the budget, government revenues in 2024 will amount to more than 383,537 million metics (5,488 million euros), equivalent to 25% of GDP, which will amount to a deficit of more than 159,488 million metics (2,281 million euros), equivalent to 10.4% GDP.
Mozambique’s GDP is expected to rise to 1.536 billion meticais (21.975 million euros) in 2024, according to the government.
Author: Lusa
Source: CM Jornal
I’m Dave Martin, and I’m an experienced journalist working in the news industry. As a part of my work, I write for 24 News Reporters, covering mostly sports-related topics. With more than 5 years of experience as a journalist, I have written numerous articles on various topics to provide accurate information to readers.