Mozambican economy already breathes gunpowder from Russia

The Russian-Ukrainian war has already demonstrated that the world can experience dark times if it lasts any longer. Every area of human life is being affected. It is as if everything is under the missiles falling in those distant lands. Although the impact doesn't literally come through the bombs, the gunpowder spreads to the four corners pushed by the force of the winds of despondency.

The world economy is suffering and Mozambique is no exception. In this sense, the Confederation of Mozambican Economic Associations - CTA recognizes that Western sanctions on Russia are negatively impacting the Mozambican economy, especially Small and Medium Enterprises (SMEs).

According to the president of the CTA, SMEs suffer too much, because "they are forced to gather a large number of meticais to meet a single dollar.

In Agostinho Vuma's view, inflation will worsen the situation for national companies, so he hopes that the Bank of Mozambique, "adopts macroeconomic measures that can control the rise in prices.

The CTA also considers that due to this war, "in a short period of time, we may see, in Mozambique, a rise in interest rates and this will suffocate our economy, from the point of view of resuming credits for direct investment.

In his view, this situation is aggravated mainly by the fact that Mozambique is a direct importer of goods from both Russia and Ukraine, among which are cereals and lubricants.

For his part, economist Custodio Duma, cited by vaoportugues, argues that, like businesses, Mozambican families should receive support "to cushion the impact of this war," from rising fuel prices to bread.

The Prime Minister, Adriano Maleiane, acknowledged that the situation prevailing in Ukraine is already having an impact on the world economy and particularly the Mozambican economy, with regard to the prices of products such as fuel and cereals.

"The government is going to be forced to revise downwards the growth of the economy, and inflation is going to go up a lot because of this war," said economist Luis Taula.

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