The year 2023 witnessed the consolidation of Mozambique’s economic recovery, driven by improved external demand and the advancement of energy projects. However, despite this positive performance, the country’s financial system faces vulnerabilities that could affect its stability.
The economic growth seen in 2023 reflects the continued improvement in external demand and the successful implementation of energy projects in Mozambique. This favorable context has contributed to maintaining a moderate level of systemic risk in the country, despite the existing vulnerabilities in the domestic and international environment.
Despite the positive performance, the Mozambican financial system faces challenges that could impact its stability. Among the main vulnerabilities identified are military instability in northern Cabo Delgado, adverse climatic factors and the level of public sector indebtedness. These elements pose significant risks to the country’s financial stability, requiring attention and measures to mitigate their impacts.
Military instability in the Cabo Delgado region has been a concern, affecting not only security, but also the economic stability of the area.
In addition, extreme weather events, such as cyclones and droughts, pose additional challenges, especially for vulnerable communities and the agricultural and infrastructure sectors.Another point of attention is the level of public sector indebtedness, which needs to be managed carefully to avoid pressure on government finances and the financial system as a whole.The search for a balance between financing development projects and debt sustainability is crucial for long-term economic stability.Faced with these challenges, it is essential that the economic and financial authorities adopt proactive measures to strengthen the resilience of the financial system and ensure a stable and sustainable economic environment for Mozambique’s future.
