The International Monetary Fund (IMF) delegation that visited Mozambique this month expressed satisfaction with the economic management policies implemented in the country in an environment of strong aftershocks from covid-19.

"The Mozambican economy is recovering from a sharp contraction, after several years of economic shocks.... and it is, however, a modest recovery," said IMF chief of staff Alvaro Piris, quoted in a statement.

According to the responsible, after the contraction last year, the economy has shown signs of recovery in 2021, and thus, a growth of 2.2% is expected.

"Robust growth in agriculture and mining was complemented by a modest recovery in services as covid-related constraints eased. Seasonal factors, supply chain constraints and international food and fuel price increases led inflation to rise to 6.8 % year on year in November, remaining within the Bank of Mozambique's target of less than ten percent," he pointed out.

The weakening of the economy was also due to the humanitarian crisis in Cabo Delgado caused by Islamic terrorism, Piris stressed.

The official suggests that fiscal measures be applied to the management of the public debt and to the financing restrictions on the country.

Piris noted that "the long-term outlook is shaped by LNG (Liquefied Natural Gas) production, with downside risks. Growth is projected to increase further in 2022, reflecting a broader recovery in the non-LNG-based economy. Over the long term, non-LNG growth is projected at 4 percent."

The team leader also revealed that the IMF will enter into discussions with the Government to support its program with an Extended Credit Line.