IMF foresees Mozambique public debt rising to 133.6% of the GDP this year

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IMF foresees Mozambique public debt rising to 133.6% of the GDP this year
IMF foresees Mozambique public debt rising to 133.6% of the GDP this year

Africa-PressMozambique. The International Monetary Fund (IMF) said on Wednesday that Angolan and Mozambican public debt will remain this year above 100% of GDP, with Mozambique remaining above that level also in 2022.

According to the ‘Fiscal Monitor’, presented today in Washington by the director of the fiscal affairs department and former Portuguese Finance Minister Vitor Gaspar, Angola’s public debt to GDP ratio fell from 136.5% last year to 103.7% this year and 90.8% in 2022, the opposite of what is happening in Mozambique.

According to the IMF, Mozambique will see its public debt rise this year, from 128.5% of GDP in 2020 to 133.6% this year, and then fall to 127.6%next year.

The Fund does not provide explanations for this evolution of the debt trajectory, only presenting the figures in a table, which should be addressed next week, when the IMF releases the report on the economic outlook for sub-Saharan Africa.

At the global level, Fund officials warned that “risks to the fiscal outlook are high” around the world, warning that the rapid distribution of Covid-19 vaccines would mitigate the problem, according to the Budget Monitor released today.

“Risks to the budget outlook are high. An increase in the production and delivery of vaccines, especially in emerging markets and developing and low-income countries, would limit further damage to the world economy,” the first chapter of the Budget Monitor released today reads.

According to the IMF, global public debt will reach 97.8% in 2021 and remain around 96% until 2026, while the global budget deficit will be 7.9% this year and will fall to 3.5% in 2026.

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