The International Monetary Fund (IMF) foresees an increase in the general price level of around 9% in 2022, which contrasts with government estimates that, despite admitting the effects of rising fuel prices, still point to 5.3%. The Fund’s recent forecast represents a significant rise in inflation, if we consider that the average of recent years has been between 2% and 4%.
Even with the negative impacts of the war in Ukraine, covid-19, and terrorism in Cabo Delgado, the IMF is optimistic about the growth of the national economy. For this year, it predicts that Mozambique will grow 3.8%, after last year’s 2.2%.
For the coming years, the prospect of growth of the national economy is even better, that is, the IMF expects that Mozambique’s Gross Domestic Product (GDP) will increase by about 5% in 2023 and 13.1% in 2027, the highest increase recorded since 1987. Justifying the optimistic projections for the performance of the economy is the forecasted beginning of gas exports from the Coral Sul project as of this year, which should significantly increase the volume of total exports.
For the next year, the IMF predicts a decrease in price increases to 7%. These data are in the institution’s latest report, entitled “World Economic Outlook”, released this Tuesday.
Due to the direct impact of the war in Ukraine, associated with the sanctions imposed on Russia, the Fund also predicts that the world economy will grow 3.6% this year and next. For Sub-Saharan Africa, it is expected an economic growth of 3.8 and 4.0 this year and in 2023, respectively.
