Africa Economic Outlook - Mozambique 2016
Jun 13, 2016
The document looks at Mozambique economic prospects as the country suffers many of the woes of resource-rich countries, with a fragile development model excessively focused on extractives and major projects. It has tremendous potential but faces considerable challenges: a lack of qualified workers; a limited internal market; infrastructure insufficiencies; a costly business environment; restricted economic diversification; a high dependency on imports; increasing debt levels, a narrow tax base and limited capacity for domestic resource mobilization.
- Mozambique’s GDP growth declined in 2015 to 6.3% because of lower export earnings and public expenditure but is expected to expand to 6.5% in 2016.
- Amid government-opposition political tensions, improved financial management and public expenditure are needed to counter growing inequalities.