Key View

• At Fitch Solutions, we forecast real GDP growth in Mozambique to accelerate from 2.0% in 2019 to 4.2% in 2020 and 5.1% in 2021.
• We expect private consumption growth to pick up moderately due to relatively low inflation and the effects of significant monetary stimulus implemented since 2017.
• Capital formation growth will accelerate

Key View

• At Fitch Solutions, we expect current expenditure to be elevated over the coming quarters following a rise in personnel costs. Meanwhile, investment spending will remain constrained by limited domestic revenue generation and a continued lack of external budgetary support.
• We forecast Mozambique’s budget deficit to narrow from a

• Increased FDI in relation to the development of oil and gas export terminals in Mozambique will support demand for commercial vehicles in 2020 and beyond.
• South African commercial vehicle production is set to benefit from increased demand from Mozambique due to proximity and the fact that a dominant share of the country’s CV imports already

Key View

• We expect to see some progress on Mozambique’s large pipeline of power projects over coming years, as the country seeks to take advantage of its hydro, gas, solar and coal resources to expand power capacity, widen access and generate revenue through power export.
• Hydropower and coal-fired power plants in particular are gaining

Key View

• At Fitch Solutions, we believe the outlook for Mozambique's exports will remain muted over the coming quarters due to falling coal prices and cyclone-induced damage to crops and infrastructure.
• Increased imports of food and capital goods following Cyclones Idai and Kenneth will keep the import bill elevated.
• We forecast the current

Key View

• Mozambique’s strong growth in food spending will be supported by low base effects, a favourable demographic profile and rising disposable incomes.
• Due to low incomes Mozambican households spend a large portion of their income on food staples made up of bread, rice and cereals.
• Meats and poultry has overtaken seafood (fish and fish