Republic of Mozambique: Fourth Review Under the Policy Support Instrument and Request for Modification of Assessment Criteria: Staff Report; Debt Sustainability Analysis; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Mozambique
IMF Staff Country Reports, June 15, 2012
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- Republic of Mozambique: Fourth Review Under the Policy Support Instrument and Request for Modification of Assessment Criteria: Staff Report; Debt Sustainability Analysis; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Mozambique
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Bibliographic details
- Published: June 15, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475504521.002
Economic performance (2011)
- The Mozambican economy recorded a strong performance in 2011, showing little sign of being affected by the global turmoil.
- Growth and resilience in 2011 underpin the policy assessment and reform dialogue in the report.
External financing and public debt dynamics
- Given the declining trend in foreign aid in the medium term, the government is tapping more into nonconcessional borrowing to close the infrastructure gap.
- Increased reliance on nonconcessional borrowing is a central financing response to infrastructure needs.
Poverty Reduction Strategy and social protection
- To promote inclusive growth, the government has launched a series of initiatives to implement the Poverty Reduction Strategy.
- Initiatives include an overhaul of social protection programs aimed at improving inclusiveness of growth.
Reform momentum and implementation challenges
- Reform momentum needs to be maintained to sustain economic performance and inclusive growth objectives.
- Implementation challenges are described as enormous, with particular emphasis on the need to upgrade administrative capacity and coordination.
Key takeaways for policy
- Maintain reform momentum to support continued strong performance and inclusive growth.
- Address administrative capacity and coordination shortfalls to improve implementation effectiveness.
- Manage the shift toward nonconcessional borrowing carefully, given its role in financing the infrastructure gap amid declining foreign aid.
Republic of Mozambique: Fourth Review Under the Policy Support Instrument and Request for Modification of Assessment Criteria: Staff Report; Debt Sustainability Analysis; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Mozambique.
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