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Mozambique expects larger deficit, faster economic growth in 2024

Published

1 year ago

December 6, 2023

Mozambique’s economy is predicted to grow by 5.5% next year, but the country’s budget deficit is growing as well, accounting for 10.4% of GDP due to debt service.

The finance minister said the growth would also be affected by public sector wage reforms and election spending. This contrasts with 2023 targets of 5.0% growth and a budget deficit of 8.7% of GDP.

In a 2024 budget speech, Finance Minister, Max Tonela, provided the most recent estimates. He stated that 3.0% of GDP would come from domestic borrowing, 1.9% from foreign loans, and 5.4% from external grants.

He stated that, among other sectors, extractive industries, agriculture, and finance would propel growth in 2024.

Over the past ten years, the economy of the country has experienced several setbacks, such as a “hidden debt” crisis, severe cyclones, and an insurgency associated with the Islamic State that is centred in the gas-rich province of Cabo Delgado.

Given those blows, “our country continues to follow a remarkable path of growth recovery, with a promising scenario in the medium term,” Tonela said.

Mozambique’s economy is mainly driven by the recovery of services and the start of liquified natural gas (LNG) production at the Coral South offshore facility.

According to the World Bank, following a gradual rebound in 2021, growth picked up steam in 2022, hitting 4.2%, and is predicted to soar to 6.0% in 2023 as LNG output at the Coral South offshore facility increases.

Related Topics:Economic Growth Featured Mozambique

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Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”