Standard Bank Mozambique predicts the country’s GDP growth to stand at 4.2% this year, with annual inflation at 9.9%, announced chief economist Fáusio Mussá in a commentary released by the bank last week.
“Considering risks still elevated, we see inflation easing towards 9.9% at the end of the year, from 10.9% y/y last December as food inflation softens and fuel price pressures moderate,” he writes.
Also read: Mozambique to receive vaccines against cholera
“This is consistent with our views that GDP growth will likely modestly rise to 4.2% y/y in 2023, from an expected 4.1%y/y in 2022,” he underlines.
“From a production perspective, growth will likely be driven by primary activities, but may however be softer in manufacturing and services on the back of a tight monetary policy and the planned front-loaded fiscal adjustment,” he concludes.