Republic of Mozambique: First Review Under the Policy Support Instrument: Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for the Republic of Mozambique
IMF Staff Country Reports, January 14, 2008
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- Republic of Mozambique: First Review Under the Policy Support Instrument: Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for the Republic of Mozambique
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Bibliographic details
- Published: January 14, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451827323.002
Summary
- The strong macroeconomic performance and the implementation of prudent fiscal and monetary policies and a flexible exchange rate regime have helped Mozambique to perform well under the Policy Support Instrument (PSI).
- Executive Directors advised to maintain macroeconomic stability and accelerate structural reforms to sustain rapid growth.
- Directors stressed the need for fiscal transparency and adopting regulations to the Mining and Petroleum Fiscal Regime laws.
- Directors appreciated the principles of the Extractive Industries Transparency Initiative, welcomed its monetary policy stance, and encouraged authorities to embark on revenue efforts to achieve the MDGs.
Major Findings and Analysis
- Macroeconomic performance: strong, supported by prudent fiscal and monetary policies and a flexible exchange rate regime.
- Structural reforms: acceleration recommended to sustain rapid growth.
- Fiscal transparency: identified as a priority by Directors.
- Extractive sector governance: need to adopt regulations to the Mining and Petroleum Fiscal Regime laws; Directors appreciated the principles of the Extractive Industries Transparency Initiative.
- Revenue mobilization: Directors encouraged authorities to embark on revenue efforts to achieve the MDGs.
- Monetary policy: Directors welcomed the monetary policy stance.
Policy Recommendations
- Maintain macroeconomic stability.
- Accelerate structural reforms to sustain rapid growth.
- Enhance fiscal transparency.
- Adopt regulations to the Mining and Petroleum Fiscal Regime laws.
- Embed principles of the Extractive Industries Transparency Initiative in governance practices.
- Undertake revenue efforts to achieve the MDGs.