Republic of Mozambique: Third Review Under the Policy Support Instrument: Staff Report; Staff Supplement; and Press Release

Author: International Monetary Fund

Volume/Issue: Volume 2009 Issue 049

Publication date: February 2009

ISBN: 9781451827354

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Topics covered in this book

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Banks and Banking , Exports and Imports , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , Business and Economics - Statistics , ISCR , CR , three-year Policy Support Instrument , real GDP , strategy , Plano de Acçãopara Redução da Pobreza Absoluta , nation's economic reform effort , liability positions vis-à-vis nonresident , GDP deflator , growth takeoff , Credit , Balance of payments statistics , Global , Africa

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Summary

This paper presents the staff report on the Republic of Mozambique’s Third Review under the policy support instrument. Mozambique is vulnerable to the global financial crisis and economic slowdown. Lower import prices will help reduce inflation and likely benefit the trade balance. Lower export volumes and reduced private capital inflows are expected to reduce economic growth. The turbulence could also spread to the financial system despite its limited integration into global financial markets. The government is focusing on strengthening policy operations, giving special attention to the tax system and public financial management.