Mozambique Economic Update, October 2018 : Shifting to More Inclusive Growth
Mozambique is beginning to emerge from a period of elevated macroeconomic volatility two years after hidden debt revelations triggered a significant economic downturn, but with a reduced capacity for growth. Having averaged near 8 percent between 2...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/132691540307793162/Mozambique-Economic-Update-Shifting-to-More-Inclusive-Growth http://hdl.handle.net/10986/30865 |
| Summary: | Mozambique is beginning to emerge from a
period of elevated macroeconomic volatility two years after
hidden debt revelations triggered a significant economic
downturn, but with a reduced capacity for growth. Having
averaged near 8 percent between 2005 and 2015, GDP growth
dropped to 3.7 in 2017 and is projected to fall further to
3.3 percent in 2018 as slower growth in coal production is
expected to offset any modest upturn in manufacturing and
services. Fiscal consolidation is making progress, but debt
levels continue to be a concern. In an analysis of the
structure and drivers of Mozambique's growth over the
past two decades, the report notes that progress in reducing
poverty levels have come as the expense of rising
inequality. Therefore, shifting the growth model to broaden
the drivers of growth and to raise productivity in sectors
with the highest employment potential is a primary challenge
facing Mozambique's policy makers today. |
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