The International Monetary Fund thinks the economy of Mozambique is recovering gradually from its slump, and forecasts that gross domestic product may grow by up to 4 percent this year.
The IMF issued a written a statement saying GDP growth was 3.75 percent last year, more than forecast, because of a stronger-than-expected recovery in agriculture and greater mining output.
The leader of a party of IMF officials that visited Mozambique recently, Ricardo Velloso, is quoted as saying: “Inflation declined rapidly, from a peak of 26 percent year-on-year in November 2016 to about 6 percent year-on-year in June, reflecting tight monetary policy, exchange rate stability and decelerating food-price increases.”
Mr Velloso forecasts that GDP growth will be between 3.5 percent and 4 percent this year, and between 4 and 4.5 percent next year as declines in interest rates support the economic recovery.
