Published On: Tue, Jan 26th, 2021

Mozambique economic revival suffers cyclone sequence

Cyclone Eloise ravages Mozambique

Cyclone Eloise ravages Mozambique

from ARMANDO DOMINGOS in Maputo, Mozambique
MAPUTO – THE deadly cyclone, the third in as many years, ravaging Mozambique is a horrifying blow to efforts to revive the Southern African country’s economy.

Mozambique is in the throes of Cyclone Eloise, which made landfall this past weekend.

No less than ten people have reportedly died as the phenomenon brought with it strong winds and rain mostly across the province of Sofala.

Severe weather conditions have displaced 7 000 people, while affecting at least 163 283 others in Mozambique.

Rand Merchant Bank (RMB) noted the timing of the devastation could not have been worse as the economy was still recovering, in terms of infrastructure, from the events of cyclones Kenneth and Idai.

These left a combined 655 people dead and had a severe impact on the economy in 2019.

“We expect the government to increase expenditure over the next few years as it continues to battle the effects of the pandemic and now the effects of the cyclone,” RMB economists stated.

The financial house forecasts the budget deficit to hover at less than 10 percent of the gross domestic product (GDP).

“This seems more reasonable compared to the government’s -9,1 percent of GDP in 2021,” RMB stated.

The International Monetary Fund (IMF) has projected Mozambique’s economy to grow by 2,1 percent in 2021.

– CAJ News

 

 

 

 

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