Africa-Press – Mozambique. Mozambique’s debt remains at high levels and this increases its vulnerability, but the country can still implement measures to guarantee its stability, according to the head of the International Monetary Fund (IMF) mission.
Speaking in Maputo on Monday (31-10) during a meeting with the president of the Confederation of Economic Associations (CTA), Pablo Lopez Murphy noted that when comparing Mozambique to other countries in the region, what stands out is the level of debt, which is extremely high, making it vulnerable to impacts on the economy and because of the amount of government revenue which must be allocated to debt service.
“Our advice for Mozambique is to reduce the vulnerability associated with the high level of debt, and there are two important ways. The first is to have greater economic growth, because it is the denominator of the Gross Domestic Product ratio, and this is what history says in several countries. And the second is to have prudent fiscal policies, that is, reduced budget deficits. This is the essence of what is needed to enable the development and expansion of the private sector,” Murphy said.
On the other hand, Lopes Murphy said that the IMF had noted a change in the Mozambican economy with the introduction of President Nyusi’s Economic Acceleration Measures Package (PAE).
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