Thursday, July 18, 2024

IMF estimates that Mozambique’s economic growth could fall from 6% to 5% in 2024

According to the International Monetary Fund (IMF), the Mozambican economy recorded growth of 6% in Gross Domestic Product (GDP) in 2023, with a forecast reduction to 5% this year. Inflation, which fell from 10.3% in 2022 to 3.9% in 2023, is expected to accelerate again in 2024, reaching 6%.

According to Lusa, the IMF reported that state revenues fell from 25.1% of GDP in 2021 to 24.3% in 2022 and to 24% last year. By 2024, these revenues are expected to rise to 25%. Net International Reserves are also expected to grow, reaching 2.5 billion dollars by December this year.

On the other hand, the Mozambican government’s projections, presented by the Minister of Economy and Finance, Max Tonela, point to growth of 5% in 2023, with an expected increase to 5.5% in 2024. Inflation is expected to reach 7%.

The IMF recently approved the third revision of the financing program for Mozambique, guaranteeing an “immediate disbursement” of 60.7 million dollars for budgetary support. With this approval, total disbursements to the country will reach 273 million dollars.

The institution highlighted that the program’s performance has been satisfactory, with five of the eight structural benchmarks met at the end of December 2023, and three of the four quantitative performance criteria observed.

These IMF projections and actions have a significant impact on Mozambique’s economy, reflecting not only the country’s economic performance, but also the outlook for the near future.

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