IMF praises Mozambique's robust growth in 2013

The International Monetary Fund (IMF) on Thursday pointed out that Mozambique's economic growth remained strong in 2013, recovering quickly from the floods that occurred at the beginning of the year. "It is now known that the GDP of Mozambique grew by 7.1 percent in 2013," Alex Segura, the IMF Resident Representative in the country, said at a press conference. "That's a very high level of growth, one of the highest in sub- Saharan Africa," he added. Segura noted that inflation remained "relatively stable" with a 4.2 percent monthly rate over 2013, below the government's medium term target of 5.6 percent. He believed that perspectives for the immediate and medium terms remain strong, "based mainly on coal exports and on investments in the natural gas industry." Segura forecast an acceleration in the growth rate to 8.3 percent, based not only on mineral resources, but also on a strong recovery in agriculture. Over the next five years he expected growth to perform at a rate of around eight percent a year, "sustained by the continual increase in coal production and exports, the construction of the natural gas liquefaction plant, and vigorous growth in transport, communications and construction." Risks over the short and medium term, Segura said, included the impact of climate change, fluctuating international commodity prices, and a potential reduction in foreign aid. Domestic risks included possible delays in the improvements in the railways and ports so essential for the logistics of coal exports, and in expanding the electricity grid. As for the insecurity arising from clashes, mostly in the central province of Sofala, between gunmen of the country's largest opposition party Renamo and the Mozambican defence and security forces, Segura recognized it could lead to problems in the supply of goods and services.