Republic of Mozambique: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Mozambique
IMF Staff Country Reports, June 18, 2019
Source details
- Canonical URL
- Republic of Mozambique: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Mozambique
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Bibliographic details
- Published: June 18, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498319997.002
Overview
- Mozambique’s economic situation had been improving until Tropical Cyclone Idai and Kenneth hit the country in March and April, respectively.
- Economic growth was recovering gradually and becoming broader based, and inflation reached low single digits.
- Economic activity is expected to decelerate sharply in 2019 due to the supply shock to productive capacity, but it should rebound to pre-cyclone levels by 2020.
- In April, the IMF Executive Board approved US$118 million in emergency assistance under the Rapid Credit Facility (RCF).
- The authorities are committed to macroeconomic stability while fostering inclusive growth and addressing governance challenges.
Economic impact of Cyclones Idai and Kenneth
- Timing: Cyclone Idai in March and Cyclone Kenneth in April.
- Primary effect: supply shock to productive capacity causing a sharp deceleration in economic activity in 2019.
- Outlook: rebound to pre-cyclone levels anticipated by 2020.
Macroeconomic indicators and trends
- Inflation: reached low single digits (as stated).
- Growth: recovering gradually and becoming broader based prior to the cyclones.
- Emergency financing: US$118 million approved under the Rapid Credit Facility (RCF) in April.
Policy stance and authorities' commitments
- Authorities’ priorities include:
- Maintaining macroeconomic stability.
- Fostering inclusive growth.
- Addressing governance challenges.
- IMF support: emergency assistance provided through the RCF to respond to cyclone-related shocks.
Publication and metadata
- Publication date: June 18, 2019.
- Series: Country Report No. 2019/166.
- Issue: 166.
- Pages: 66.
- Volume: 2019.
- DOI: https://doi.org/10.5089/9781498319997.002.
- ISBN: 9781498319997.
- ISSN: 1934-7685.
- Subjects: Credit, Fiscal risks, Government debt management, Public debt, Public financial management (PFM), Revenue administration.
- Keywords: Africa, authorities' reform effort, commodity price volatility, CR, director, Executive Board assessment, financial support, Fiscal risks, Global, Government debt management, ISCR, monetary policy, monetary policy framework, reconstruction financing, Southern Africa, supply shock.
Source: Republic of Mozambique: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Mozambique (IMF), June 18, 2019.
Content in this bundle
- 1mozea2019002