Standard Bank’s economic studies office believes that Mozambique’s economy is expected to grow 3.5% this year and 3.9% by 2019, depending on foreign investment in natural resources to accelerate growth.
“GDP growth will remain low until the next boom in foreign direct investment, which will likely be associated with development of the natural gas projects,” write the analysts of a bank which stands out for its strong presence in the African continent.
In the document, sent to investors and accessed by Lusa, analysts expect a 3.5% growth this year and 3.9% growth in 2019, after estimating “real GDP growth to have bottomed out at 3.2% y/y in 2017”.
“The [Mozambican] economy was hit hard by the April 2016 revelation of previously undisclosed loans, which forced the adoption of a tighter monetary policy and fiscal consolidation measures to help restore macroeconomic stability, driving growth in aggregate demand to historical lows,” Standard Bank experts write.
“Despite inflation easing and interest rates declining, we do not expect GDP growth to rebound to the average 7% y/y recorded before 2016,” analysts say.-COM
