Republic of Mozambique: Fifth Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, and Financing Assurances Review

Author: International Monetary Fund

Volume/Issue: Volume 2007 Issue 036

Publication date: February 2007

ISBN: 9781451827286

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Topics covered in this book

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Banks and Banking , Exports and Imports , Money and Monetary Policy , Public Finance , Poverty and Homelessness , ISCR , CR , group mission , government , Cahora Bassa dam , Hidroeletrica de Cahora Bassa , World Bank staff , petroleum sector , recourse financing , staff appraisal , Total expenditures , Global

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Summary

The Fifth Review Under the Three-Year Arrangement under the Poverty Reduction and Growth Facility of the Republic of Mozambique explains macroeconomic performance. Growth has picked up, led by strength in the construction sector and a recovery in agricultural production. The strategy to consolidate macroeconomic stability in the context of scaling-up of foreign aid should sustain strong growth. The Bank of Mozambique (BM) will continue to target base money and facilitate absorption of the additional foreign aid while a strengthening of Public Financial Management (PFM) systems ensure a better monitoring of expenditures.