Posted by: mulrickillion | December 25, 2011

Press Release: IMF Completes Third Review Under the Policy Support Instrument for Mozambique

Press Release No. 11/449
December 7, 2011

The Executive Board of the International Monetary Fund (IMF) has completed the third review under the three-year Policy Support Instrument (PSI) for the Republic of Mozambique.1 The Board’s decision was taken on a lapse of time basis.2

Mozambique continues to weather the global economic turmoil well. Real GDP growth is projected to remain above 7 percent in 2011, benefiting from good harvests, a robust performance in the services sector, and the coming online of new megaprojects in the natural resource sector. While risks related to the external environment have increased, Mozambique’s macroeconomic stability and prudent policy mix over the past few years should help the economy mitigate the impact of a temporary global downturn. The tightening of monetary policy in 2011 has been effective in curtailing inflation. The prudent execution of the 2011 budget has contributed to a judicious policy mix that has fostered macroeconomic stability at a critical time and positioned the country well to respond to downside risks should such a need arise. All quantitative targets for end-June 2011 were met, except for reserve money growth which was missed by a small margin. Progress on the structural front has also been good. . . .

Press Release: IMF Completes Third Review Under the Policy Support Instrument for Mozambique

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