Mozambique government forecasts 4.7% growth in 2019

Mozambique government forecasts 4.7% growth in 2019

The Mozambican government expects the economy to 4.7% in 2019 in relation to this year, according to the proposed Economic and Social Plan (PES) approved by the Council of Ministers yesterday.

“PES 2019 is based on the following macroeconomic assumptions: economic growth of 4.7%, annual average inflation rate of about 6.5%” and “reaching US$ 5.16 billion in exports of goods”, the Deputy Minister of Mineral Resources and Energy said.

According to Cabinet spokesman Sousa Fernando, it is also expected that Mozambique will maintain Net International Reserves (RIL) sufficient to cover six months of imports of non-factor goods.

At the same meeting, the 2019 state budget draft amounting to 324 billion meticais (EUR 4.64 billion) was approved, and will be discussed in parliament by the end of the year. The State Budget approved for 2018 amounted to 302.9 billion meticais (EUR 4,3 billion).

“In the 2019 State Budget, the allocation of public resources will continue to be directed towards consolidating the democratic process and complying with strategic and priority actions defined in the Government’s 2015-2019 Five-Year Plan for the economic and social sectors that provide basic services to the population,” the document reads.

Although approved by the Council of Ministers, the draft 2019 Economic and Social Plan and State Budget have not yet been disclosed by the government.