LNG explorations expected to lift Moz’s economic fortunes
8 Aug 2019 - by
Despite ongoing economic woes, progress made on the natural gas discoveries in Mozambique will see the country return to growth from next year.
The latest forecasts from the Economist Intelligence Unit (EIU) have projected that Mozambique’s economy is expected to contract by 0.5% this year but will see a 3% growth rate in 2020 and an increase of 5.6% in 2021 and 2022 respectively.
By 2023, EIU analysts expect to see a whopping 7.5% jump in growth as the country benefits from the exploration of natural gas deposits in the Rovuma basin in Cabo Delgado province
According to a recent Focus-Economics report, Mozambique’s economic growth this year lost major momentum due to the devastating impact of cyclones Idai and Kenneth which struck in March and April. The country’s fiscal and current account deficits are set to widen thanks to the reconstruction costs from the storms.