Fitch Solutions yesterday stated in their latest report that Mozambique’s economy will accelerate to 4.4% in 2022, after growing 2.8% this year, recovering from the 1.3% recession in Gross Domestic Product (GDP) registered in 2020.
“We expect that, after an estimated contraction of 1.3% in 2020, Mozambique’s GDP will grow by 2.8% this year, well below the 5.5% average recorded between 2010 and 2019”, reads their economical report.
Fitch Solutions estimates that the growth of the Mozambican economy will accelerate to 4.4% next year, supported by the strengthening of domestic demand and the increase in natural gas exports.
Commenting on Mozambique’s slow vaccionation rate, Fitch analysts add that “although the latest containment measures will expire on August 30th, we believe that some restrictions will remain in place at least until the end of the year and negatively influence the recovery of private activity and consumers,”.
In the consultancy firms’ opinion, Mozambique “will hardly be able to meet the target of vaccinating 16 million of the 32 million inhabitants by the end of next year, but progress in immunization will reduce the risk of further confinement due to the covid-19 pandemic.”
The risks to these forecasts are, analysts conclude, negative, meaning they are more likely to get worse than better.
“ENI’s offshore floating platform is on track to secure first gas in 2022, and we anticipate a 27.1% increase in gas production in 2022, which should boost exports and Government revenues, giving more space to public spending”, the document reads.
Mozambique registered 1,800 deaths due to the new coronavirus and 142,784 accumulated positive cases.
Covid-19 has caused at least 4,423,173 deaths worldwide, amongst more than 211.3 million infections by the new coronavirus registered since the start of the pandemic, according to the latest report by AFP.