Mozambique
Mozambique

The Mozambican government announced Thursday that it has a deficit of 77 billion U.S. dollars for the state budget as the international partners continued to suspend support for the country.

According to government spokeswoman Ana Comoana, the 77-billion-dollar deficits correspond to 9.7 percent of GDP this year, compared to 10.7 percent in 2016.

“In principle, we will cover this deficit through internal credit corresponding to 2.3 percent of GDP and external donations that may come from traditional donors or partners with whom Mozambique will recover agreements following the suspension of support,” said Comoana.

For the coming 2018, the Mozambican government expects a GDP growth of 5.3 percent against 4.7 percent this year.

The spokeswoman said that efforts have been made to normalize cooperation with donors that have suspended aid. Meanwhile, the government will bet on fiscal consolidation through revenue collection and containment of public spending.

The Mozambican economy is going through a critical moment after undeclared debts of 2 billion dollars have been made public, leaving the state’s safes empty. Enditem

Source: Xinhua/NewsGhana.com.gh

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