International Monetary Fund analysts have concluded that Mozambique faces mounting economic pressures despite controlled inflation rates and a tentative recovery from civil disturbances that followed disputed elections. Mission chief Pablo Lopez-Murphy emphasized that growth remains weak due to government financing difficulties, currency shortages, and elevated debt levels that threaten broader stability.
The Washington-based lender called for coordinated reforms combining budget consolidation, flexible exchange rate policies, and governance improvements to restore investor confidence. Positive developments such as TotalEnergies resuming its liquefied natural gas development and removal from the Financial Action Task Force monitoring list could attract capital inflows, though officials warned that failure to address fiscal vulnerabilities risks deeper economic deterioration.
The assessment team engaged Finance Minister Carla Loveira, central bank Governor Rogerio Zandamela, and parliamentary representatives during consultations in Maputo that will inform recommendations to the fund's executive board.
The Washington-based lender called for coordinated reforms combining budget consolidation, flexible exchange rate policies, and governance improvements to restore investor confidence. Positive developments such as TotalEnergies resuming its liquefied natural gas development and removal from the Financial Action Task Force monitoring list could attract capital inflows, though officials warned that failure to address fiscal vulnerabilities risks deeper economic deterioration.
The assessment team engaged Finance Minister Carla Loveira, central bank Governor Rogerio Zandamela, and parliamentary representatives during consultations in Maputo that will inform recommendations to the fund's executive board.
