Standard Bank Mozambique expects the country's GDP to grow by 4.2% in 2023 and annual inflation to reach 9.9%, announced chief economist Fáusio Mussá in a commentary released by the bank..

"Although the risks remain high, we have adjusted our inflation forecast to 9.9%, in annual terms, at the end of 2023, after reaching 10.9% in December," said the chief economist, quoted by Lusa.

The analyst highlighted the movement of food inflation "slowing down" and "pressures on fuel prices becoming moderate".

"This outlook is consistent with our forecast that GDP growth will increase modestly in 2023 to 4.2%, after an estimated 4.1% in 2022," he said.

"From the point of view of production, growth is likely to be driven by the primary sector. However, growth could be slower in the secondary and services sectors, due to the expected impact of the restrictive monetary policy and the planned fiscal adjustment," he concluded.