The countries and international organisations that previously supported Mozambique will continue to stay out of the country in 2018, said consulting firm BMI Research, adding that public investment will remain low in the near future due to a lack of international support.
“The Mozambican government will continue to reduce investments in the coming quarters to try to cope with the budgetary pressure arising from the withdrawal of international assistance,” said the analysts from BMI, a consultancy that is part of the Fitch Ratings group, cited by Portuguese state news agency Lusa.
Economic growth, however, will not be at the level of the recent past, standing at 4.6% this year, up from the 4.1% estimated for last year and 3.8% in 2016, but “below the long-term trend of 7% between 2000 and 2015.”
Mozambique’s National Statistical Institute (INE) reported last week that the country’s economy recorded real growth of 3.7% in 2017, a contraction of 0.1 percentage points compared to growth recorded in 2016.
INE added that this value was based on GDP estimates, calculated as the sum of the four quarters of 2017.