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Mozambique economy bounces back
According to the World Bank, Mozambique's economy is likely to grow 4.6 per cent this year, driven by recovering of coal, aluminum, gas and improved farm output. The Bank Commended Mozambique's "two-speed economy" as extractives and mega projects continue to spur growth. Dr Martyn Davies, Managing Director, Emerging Markets & Africa at Deloitte joins CNBC Africa for more.
Fri, 22 Sep 2017 10:11:49 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The disconnect between macro fiscal reality and headline growth numbers in Mozambique highlights artificial economic growth driven by extractives and mega projects.
- The self-created fiscal challenges of the Mozambican government inhibit sustainable development and private sector growth.
- Improved governance and fiscal confidence are essential for the country to overcome its fiscal challenges and foster long-term economic success.
Mozambique's economy is facing challenges despite showing signs of growth, with a predicted 4.6% increase by the World Bank this year. Dr. Martyn Davies, Managing Director of Emerging Markets & Africa at Deloitte, warned that the country's economic growth is artificial and driven by extractives and mega projects in a recent interview on CNBC Africa. Davis highlighted that Mozambique's macro fiscal reality is disconnected from the headline growth numbers due to the country's self-created fiscal challenges. The failure to address these challenges has hindered the nation's progress in achieving sustainable development. He emphasized the importance of governance in realizing economic growth and stressed the need for the government to restore fiscal confidence for long-term success.
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