The International Monetary Fund (IMF) said that Mozambique needs "greater fiscal consolidation, given its high debt and tight financing conditions".

The information is contained in a statement issued today by the IMF, following the conclusion of the regular consultation that allowed Mozambique "immediate access" to the equivalent of 60.3 million dollars "usable for budget support".

Commenting on the country's economic performance, the IMF believes that "revenue mobilization and rationalization of payroll spending are essential to create fiscal space for priority social and development spending".

According to the IMF, Mozambique's public debt could increase this year to 97.5% of Gross Domestic Product (GDP). However, it advocates a combination of carefully calibrated fiscal and monetary policies to preserve macroeconomic stability.

(Photo DR)