The International Monetary Fund (IMF) said today that Mozambican and Angolan public debt will remain above 100% of GDP this year, with Mozambique expected to remain above that level also in 2022.

According to the "Fiscal Monitor", presented today in Washington by the director of the fiscal affairs department and former Portuguese Finance Minister Victor Gaspar, Angola's ratio of public debt to GDP fell from 136.5% last year to 103.7% this year and 90.8% in 2022, unlike what happens in Mozambique.

The IMF quoted by Lusa news agency says that this Lusophone country will see its public debt increase this year, from 128.5% of GDP in 2020 to 133.6% this year, and then fall to 127.6% next year.

The Fund does not give explanations for this evolution of the debt trajectory, only presenting the numbers in a table, which should be addressed next week, when the IMF releases the report on the economic outlook for sub-Saharan Africa.

Globally, Fund officials warned that "risks to budget forecasts are high" around the world, warning that rapid distribution of covid-19 vaccines would mitigate the problem, according to the Budget Monitor released today.

"Risks to the fiscal outlook are high. An increase in vaccine production and delivery, especially in emerging markets and developing and low-income countries, would limit further damage to the world economy," the first chapter of the Budget Monitor, released today by the IMF, reads.

According to the IMF, global public debt will reach 97.8% in 2021 and remain around 96% until 2026, while the global budget deficit will be at 7.9% this year and will decline to 3.5% in 2026.

Source: Lusa