Onwards and upwards for Mozambique – IMF

Mozambique's economy is on track for a ‘strong rebound’ in 2020, the IMF has noted as it urged the government to ensure an expected gas boom benefits all citizens. The country is seeking to become the world's third-largest exporter of liquefied natural gas since vast offshore reserves were found in 2010. However, low gas prices, combined with a government debt scandal in 2016, delayed exploitation and triggered a prolonged economic downturn. ‘The outlook for 2020 is for a strong rebound in economic activity and low inflation,’ said IMF Mozambique mission chief Ricardo Velloso. Real GDP growth is projected to reach 5.5% next year, up from the 2.1% now expected for 2019. This is largely due to ‘post-cyclones reconstruction efforts’, agricultural recovery and the easing of monetary conditions.