The government has revised downwards its forecasts for economic growth in 2025, now pointing to a range between 2.9 per cent and 3.0 per cent, a figure significantly lower than previous estimates, which pointed to 4.7 per cent. The information was provided by Finance Minister Carla Louveira during an audience with the deputy director of the African Department of the International Monetary Fund (IMF), held this week in Maputo.The downward revision comes against a backdrop of fiscal and economic challenges, with the 2025-27 Medium-Term Fiscal Scenario, released in June last year, forecasting growth of 5.5 per cent for 2024 and 4.7 per cent for 2025, after the economy had grown by 5.0 per cent in 2023. However, factors such as reduced performance in the extractive sector, climatic effects on agriculture and difficulties in transport and communications were decisive in correcting the forecasts.In addition to the slowdown in growth, the government now estimates that inflation could stabilise at 7.0% in 2025, higher than previous forecasts. ‘Inflation is expected to remain within the 4.5-5.5 per cent band between 2025-27, in line with the objective of keeping inflation in single digits, although subject to pressure from supply shocks and increases in commodity prices, especially food and energy,’ says the Medium-Term Fiscal Scenario 2025-27.The meeting with the IMF took place at a time when the country’s economic performance was being assessed under the Extended Credit Facility Programme, with the Fund expressing concern about Mozambique’s current fiscal situation.Andrea Richter Hume, deputy director of the IMF’s African Department, stressed that the mission was ‘very concerned about the country’s fiscal situation in terms of revenue collection, rationalisation of public spending, the wage bill, public debt and other arrears’. The IMF also showed its willingness to continue supporting Mozambique in the new 2025-29 governance cycle.The Finance Minister highlighted the progress made in the relationship with the IMF, emphasising that the country has already had four successful evaluations and has received accumulated disbursements of 330 million dollars (20.8 billion meticals). (ICE MAPUTO)

Fonte notizia: 360 MOZAMBIQUE