IMF Staff Team Concludes a Technical Virtual Mission to Mozambique

Washington, DC: An IMF mission team held a virtual staff visit with the Mozambican authorities, concluding on March 29, 2021.

Discussions centered on macroeconomic prospects and policies to manage the difficult economic circumstances created by the COVID pandemic, and the authorities’ reform agenda for the next years. Staff and the authorities share a broadly similar assessment of economic prospects for 2021 and the medium-term, with staff acknowledging the authorities’ adroit economic management in the face of a series of shocks in the past years.

The IMF remains closely engaged with the authorities in developing policy reforms in fiscal, monetary and financial, and governance areas, including strong collaboration through technical assistance.

Mozambique: Selected Economic Indicators

2018

2019

2020

2021

(Annual percentage change,

unless otherwise indicated)

National income and prices

Nominal GDP (MT billion)

896

957

980

1052

Real GDP growth

3.4

2.3

-1.3

1.6

Consumer price index (end of period)

3.5

3.5

3.5

7.8

(Percent of GDP)

Government Operations

Total revenue

23.8

28.9

24.1

24.2

Total expenditure and net lending

31.3

30.0

30.9

33.3

Overall balance, after grants

-8.2

-1.2

-4.1

-6.3

Primary Balance after grants

-3.8

2.0

-1.0

-3.2

(Annual percentage change,

unless otherwise indicated)

Money and Credit

Reserve money

22.5

19.1

9.0

11.1

M3 (Broad Money)

8.2

12.1

23.6

12.1

Credit to the economy

-2.5

5.0

14.8

7.0

(Percent of GDP)

24.6

24.1

27.1

27.0

External sector

Merchandise exports

10.0

-9.2

-23.9

6.5

Merchandise exports, excluding megaprojects

20.2

12.1

-24.7

-11.3

Merchandise imports

18.1

9.5

-12.9

32.9

Merchandise imports, excluding megaprojects

8.9

9.3

-4.5

3.1

(Millions of U.S. dollars)

External Public Debt

13,335

13,485

15,199

14,769

External current account, after grants

-4,501

-3,022

-3,813

-10,393

Net international reserves (end of period)

2,885

3,605

4,351

4,005

Gross international reserves (end of period)

3,081

3,884

4,552

4,206

Sources: Mozambican authorities; and IMF staff estimates and projections.

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