Max Tonela notes Country's remarkable growth recovery trajectory but laments international context
Mozambican Minister of Economy and Finance, Max Tonela, stated in parliament today that the country is on a "remarkable recovery trajectory of growth," anticipating a 5% increase in Gross Domestic Product (GDP) by the end of the year.
"Despite enormous international and domestic challenges, notably the prevalence of an unfavorable and unstable geopolitical environment, combined with the adverse impact of climate change and the effects of terrorism in Cabo Delgado province, our country continues to follow a remarkable growth recovery trajectory, with a promising medium-term outlook," Tonela asserted.
"For the current year, there is a perspective of 5% economic growth, in line with the plan approved by this august house, with an even more optimistic projection of 5.5% for 2024," Max Tonela advanced during the presentation of the proposal for the Economic and Social Plan and Budget (PSOE) for 2024, at the Assembly of the Republic.
Tonela also noted that after the COVID-19 pandemic in 2020, the GDP recorded a real growth of 2.3% in 2021 and 4.1% in 2022, countering the negative register of 1.2% in 2020.
He admitted that inflation is expected to fall to a single digit this year, reaching 7%, after 10.3% in 2022, and is forecasted to remain in single digits in 2024. The price drop is influenced by the stability of the metical against major foreign currencies.
"This trend is also driven by the expectation of a slowdown in international fuel prices, especially the price of Brent crude, which has contributed to the stability of domestic prices, although now conditioned by the dynamics of the Israeli-Palestinian conflict," he emphasized.
Max Tonela advanced that the economic growth forecast for the next year will be supported mainly by the extractive industry sector (18%) and the expected performance in the fields of agriculture (5.7%), finance (3.5%), transport (5.5%), electricity and gas (3.5%), and construction (37%).
The PSOE proposal points out that Mozambique's goods exports will reach 9.7 billion dollars in 2024 and net international reserves of over 2.2 billion dollars.
"It is worth highlighting that the level of net international reserves will be comfortably sufficient to cover import needs for three months," Max Tonela highlighted.
TORRE
