World Bank considers that the Mozambican economy should recover in the medium term, reaching 4% growth in 2022.
“Mozambique’s economy should continue to recover gradually, but there remain substantial downside risks due to uncertainty over the course of the Covid-19 pandemic,” reads the World Bank’s latest analysis of the Mozambican economy, released in Washington.
The source says, however, that the country is expected to remain in recession this year, falling 0.8% of gross domestic product (GDP), after in the past it suffered a 1.3% drop, recovering only in 2022.
The report notes that “job losses and business closures, while significant, were comparatively lower than in comparable countries.”
Praising the government for its “swift measures,” not only on the health, but also economic and monetary levels, the report advocates strengthening the measures adopted during the first wave to have the same positive effect during the second wave of the pandemic.
In addition to measures to support the economy, particularly workers moving into the informal economy, the report also advocates the need to advance structural reforms, pointing out that in the pandemic’s recovery phase, “policies focused on economic transformation and job creation, especially for the young, will be critical.”
