IMF welcomes Mozambique's progress on structural reforms

The International Monetary Fund (IMF) welcomed the progress made by Mozambique on a broad range of structural reforms, especially the passage of new mining and hydrocarbon legislation, which is "encouraging", according to a statement Xinhua received on Friday.

The IMF Executive Board completed the fourth review of Mozambique's economic performance on Thursday, and in its statement, the IMF regarded the country's continued strong growth performance and low inflation as "commendable."

The statement also said that although the investments in large coal and natural gas projects underpin a positive medium-term outlook, low commodity prices have increased near-term risks for the southern African country.

The statement described Mozambique's performance under the Policy Support Instrument (PSI) as "mixed", claiming that "while structural reforms have been proceeding, there were macroeconomic policy slippages and reserve losses in late 2014."

Meanwhile, the IMF was optimistic by pointing out that the necessary steps to maintain macroeconomic stability are now in place in Mozambique, with "a strong fiscal adjustment envisaged in the current budget and a recent tightening of liquidity conditions. "

The international institution still considered that further measures are needed to make poverty more responsive to growth and strengthen the business climate of the country.

In recent years, Mozambique has become one of the fastest growing economies in the southern African region, with an average growth rate of more than 7 percent.