{"id":19810,"date":"2022-05-20T15:53:40","date_gmt":"2022-05-20T15:53:40","guid":{"rendered":"https:\/\/www.africa-press.net\/mozambique\/all-news\/mozambique-will-suffer-indirectly-from-ukraine-war-but-imf-predicts-growth"},"modified":"2022-05-20T15:59:13","modified_gmt":"2022-05-20T15:59:13","slug":"mozambique-will-suffer-indirectly-from-ukraine-war-but-imf-predicts-growth","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mozambique\/all-news\/mozambique-will-suffer-indirectly-from-ukraine-war-but-imf-predicts-growth","title":{"rendered":"Mozambique will suffer indirectly from Ukraine war but IMF predicts growth"},"content":{"rendered":"

Africa-Press – Mozambique. <\/strong><\/span>The International Monetary Fund (IMF) representative in Mozambique, Alexis Meyer-Cirkel, warned on Thursday (19-05) that the country would suffer indirectly from the war in Ukraine, while still maintaining the prospects of accelerating economic growth.<\/p>\n

\u201cMozambicans will really feel this crisis indirectly,\u201d Meyer-Cirkel stressed during the presentation in Maputo of the IMF\u2019s Regional Economic Outlook for Sub-Saharan Africa report, underlining the recent increase in the price of fuel and cereals.<\/p>\n

In some provinces \u201cbread makers are adjusting bread prices in response to rising wheat prices,\u201d Meyer-Cirkel said.<\/p>\n

The IMF predicts that inflation could reach 9% this year and then slow down to 7% in 2023.<\/p>\n

The IMF representative further noted that, in addition to Russia\u2019s invasion of Ukraine, the world is not yet completely free from Covid-19.<\/p>\n

Even so, with regard to the pandemic, Meyer-Cirkel considers that Mozambique is progressing at an encouraging pace, with very advanced vaccination rates.<\/p>\n

In general, \u201cthe outlook for Mozambique is better than the average for Sub-Saharan Africa, especially in the coming years, with the expectation about gas\u201d and the start-up of projects in the Rovuma basin, he added.<\/p>\n

His outlook is presented after the IMF on May 9 approved a financing agreement with Mozambique for the period through to 2025 worth US$470 million (\u20ac445 million).<\/p>\n

IMF forecasts point to 3.1% growth in Mozambique\u2019s gross domestic product (GDP) this year, accelerating to 5% in 2023 and 8.3% in 2024.<\/p>\n

Mozambican government forecasts indicate economic growth of 2.9% this year, as per the Economic and Social Plan and State Budget approved by parliament in December, but without taking into consideration the global risks triggered by the war in Ukraine.<\/p>\n

Meyer-Cirkel says that the ambition to maintain economic stability in the midst of a war requires a different posture, and, while conceding the country\u2019s ability to collect revenues and taxes, warns that Mozambique needs to control the increase in public debt.<\/p>\n

IMF forecasts point to public debt remaining around 102% of GDP this year, falling to 94.8% in 2023.<\/p>\n

For Meyer-Cirkel, the main risks for the Mozambican economy continue to be armed violence in Cabo Delgado, a province terrorized by armed rebels since 2017, persistent fears surrounding Covid-19, and natural disasters.<\/p>\n

\u201cSpecifically, terrorism increases fiscal pressures, delays the gas projects and increases poverty and inequality,\u201d he said.<\/p>\n

With a financing agreement signed with Mozambique, an important signal for the international financial market, the IMF representative understands that investment in human capital and diversification of the economic base remain among the main necessary reforms.<\/p>\n

For More News And Analysis About Mozambique<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mozambique. The International Monetary Fund (IMF) representative in Mozambique, Alexis Meyer-Cirkel, warned on Thursday (19-05) that the country would suffer indirectly from the war in Ukraine, while still maintaining the prospects of accelerating economic growth. \u201cMozambicans will really feel this crisis indirectly,\u201d Meyer-Cirkel stressed during the presentation in Maputo of the IMF\u2019s Regional […]<\/p>\n","protected":false},"author":84,"featured_media":19809,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,7,8,16],"tags":[233,281,283],"class_list":["post-19810","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-head-lines","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-mozambique","tag-mozambique"],"yoast_head":"\nMozambique will suffer indirectly from Ukraine war but IMF predicts growth - 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