Standard Bank has revised its growth forecast for Mozambique for this year upwards from 2.8% to 3.4%, according to the bank’s latest analysis note.
“We expect growth in Gross Domestic Product for 2022 of 3.4%, compared to the same period last year, up from the 2.8% revised in March,” chief economist at Standard Bank Mozambique Fáusio Mussá says in the Purchasing Managers Index (PMI) for May.
Agricultural performance and the new agreement with the International Monetary Fund (IMF) influenced the upward revision.
Also read: Mozambique Appload among 20 startups selected to participate in Norrsken accelerator program
“This forecast update considers the positive impacts of higher-than-expected agricultural performance and increased external support on account of the $456 million (€424 million) Expanded Credit Facility recently approved by the IMF,” Mussa explained.
According to the chief economist, “production growth and aggregate demand appear to be strong enough to offset the negative impact of heightened price pressures and tighter monetary policy”.
The same projections continue to point to inflation of 9.4% at the end of the year.