In a context where the Covid-19 pandemic reduces the impact of economic reform to improve Mozambique's business environment, the government is seeking alternative solutions to revitalize the economy.

The information was advanced by the Vice-Minister of Economy and Finance, Carla Louveira, at the economic forum held recently in Maputo under the theme: "What economic policy options in Mozambique to revitalize the economy in the face of the Covid-19 pandemic?

According to her, prior to the outbreak of the pandemic, the national economy was on a gradual recovery path following the increase in public debt levels in 2016 and the occurrence of Cyclones Idai and Kenneth in 2019.

"We recorded a growth of 3.4% in 2018 and another 2.2% in 2019. However, the outbreak of the Covid-19 pandemic in 2020 coupled with other shocks such as falling commodity prices in the international market, currency depreciation, weather shocks and instability have led to a contraction in economic activity in the country of 1.3% in 2020," he said.

The source added that it is in this context that the "Executive" has seen a need to adjust the ongoing economic reforms to the scenario resulting from the impact of the pandemic.

"This scenario has prompted the Government to revisit the recently approved Medium Term Fiscal Scenario 2022-2024 in order to adjust the macroeconomic assumptions of the national environment to the policy measures, for the mitigation of the Covid-19 pandemic towards the revitalization of the economy and fulfillment of the Government's Five-Year Program 2020-2024," he stressed.

Recall that the first discussion forum took place in December last year, in which a presentation was made under the theme "The Macroeconomic Impact of Covid-19 in Mozambique: A Social Accounting Matrix Approach". The theme sought to assess the economic costs of the pandemic, using a social accounting multiplier model.

According to information, this is a discussion forum, created with the involvement of all segments of society, in search of alternatives that can contribute to the economic reforms underway in the country.