Mozambique Economic Update, December 2016 : Facing Hard Choices
This Mozambique economic update brief for 2016 includes a section on recent economic developments and a discussion of Mozambique’s economic outlook, followed by focus section(s) analyzing issues of particular importance.This has been a testing year...
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/334311481183208191/Mozambique-economic-update-facing-hard-choices http://hdl.handle.net/10986/25744 |
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okr-10986-257442021-05-25T08:56:24Z Mozambique Economic Update, December 2016 : Facing Hard Choices World Bank economic growth exchange rate inflation fiscal trends monetary policy trade debt state-owned enterprises fiscal risks This Mozambique economic update brief for 2016 includes a section on recent economic developments and a discussion of Mozambique’s economic outlook, followed by focus section(s) analyzing issues of particular importance.This has been a testing year for Mozambique. An ongoing downturn, brought about by low commodity prices, drought and conflict, was compounded by the fallout from the discovery of hidden debts in April 2016. The level of debt took an explosive path with the addition of the previously undisclosed loans, making Mozambique one of the countries in Africa with the highest debt to GDP ratios. The rate at which the Mozambican currency depreciated outpaced that of most other African commodity exporters, including Nigeria and Angola, where economic pressures have also been acute. Foreign direct investment (FDI), and exports, are projected to fall by 17 and 8 percent respectively in 2016. Clearly, Mozambique’s macroeconomic stability has been shaken-up. The agenda for restoring economic stability and confidence will stretch into 2017 and possibly beyond. Key items on the agenda include setting a medium term framework for restoring fiscal sustainability, anchored in a target for reducing debt and a credible fiscal adjustment program. Enhanced financial sector surveillance and the strengthening of crisis management instruments is also a priority, particularly if further monetary tightening is in the pipeline in the near term. Moreover, the current economic circumstances highlight the need to manage fiscal risks and contingent liabilities better. In this regard, reforms to develop effective oversight over state-owned enterprises and other public entities are urgent, along with reforms to overhaul the framework for managing guarantees. 2016-12-14T22:53:06Z 2016-12-14T22:53:06Z 2016-12 Report http://documents.worldbank.org/curated/en/334311481183208191/Mozambique-economic-update-facing-hard-choices http://hdl.handle.net/10986/25744 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work Africa Mozambique |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
economic growth exchange rate inflation fiscal trends monetary policy trade debt state-owned enterprises fiscal risks |
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economic growth exchange rate inflation fiscal trends monetary policy trade debt state-owned enterprises fiscal risks World Bank Mozambique Economic Update, December 2016 : Facing Hard Choices |
| geographic_facet |
Africa Mozambique |
| description |
This Mozambique economic update brief
for 2016 includes a section on recent economic developments
and a discussion of Mozambique’s economic outlook, followed
by focus section(s) analyzing issues of particular
importance.This has been a testing year for Mozambique. An
ongoing downturn, brought about by low commodity prices,
drought and conflict, was compounded by the fallout from the
discovery of hidden debts in April 2016. The level of debt
took an explosive path with the addition of the previously
undisclosed loans, making Mozambique one of the countries in
Africa with the highest debt to GDP ratios. The rate at
which the Mozambican currency depreciated outpaced that of
most other African commodity exporters, including Nigeria
and Angola, where economic pressures have also been acute.
Foreign direct investment (FDI), and exports, are projected
to fall by 17 and 8 percent respectively in 2016. Clearly,
Mozambique’s macroeconomic stability has been shaken-up. The
agenda for restoring economic stability and confidence will
stretch into 2017 and possibly beyond. Key items on the
agenda include setting a medium term framework for restoring
fiscal sustainability, anchored in a target for reducing
debt and a credible fiscal adjustment program. Enhanced
financial sector surveillance and the strengthening of
crisis management instruments is also a priority,
particularly if further monetary tightening is in the
pipeline in the near term. Moreover, the current economic
circumstances highlight the need to manage fiscal risks and
contingent liabilities better. In this regard, reforms to
develop effective oversight over state-owned enterprises and
other public entities are urgent, along with reforms to
overhaul the framework for managing guarantees. |
| format |
Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Mozambique Economic Update, December 2016 : Facing Hard Choices |
| title_short |
Mozambique Economic Update, December 2016 : Facing Hard Choices |
| title_full |
Mozambique Economic Update, December 2016 : Facing Hard Choices |
| title_fullStr |
Mozambique Economic Update, December 2016 : Facing Hard Choices |
| title_full_unstemmed |
Mozambique Economic Update, December 2016 : Facing Hard Choices |
| title_sort |
mozambique economic update, december 2016 : facing hard choices |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/334311481183208191/Mozambique-economic-update-facing-hard-choices http://hdl.handle.net/10986/25744 |
| _version_ |
1764460043308105728 |