Mozambique's GDP Recovery and Energy Sector Developments
Mozambique's GDP is projected to rebound to 4.5% in 2022 and potentially reach 5.1% in 2023, driven by energy sector growth. Increased LNG production from the Coral South Terminal and other resource sectors are expected to enhance national revenue and reduce public debt significantly by 2027.
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Mozambique's GDP is anticipated to recover to 4.5% by the end of 2022 and may rise to 5.1% in 2023, largely due to the Coral gas field achieving full production capacity. The IMF approved a three-year, $456 million credit facility to bolster fiscal sustainability, marking a resumption of financial assistance after prior suspensions.
The Coral South LNG output, starting in October 2022, is expected to reach 3.4 million metric tonnes annually by 2023, contributing significantly to national revenues. Despite challenges such as rising inflation projected at 11.83% and public debt reduction from 106.6% of GDP in 2022 to 77.3% by 2027, the energy sector's growth is a crucial aspect of economic recovery. The political landscape remains stable under the ruling Frelimo party, although social and economic imbalances persist.
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