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Mozambique to grow fastest among Lusophone countries: World Bank
Release time:2015-06-15
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Mozambique’s economy is forecast to grow at the fastest rate among Portuguese-speaking countries this year, according to a report by World Bank.

The Washington-based institution said in its Global Economic Prospects – released last week – that Mozambique’s gross domestic product is expected to grow by 7.2 percent this year before reaching 7.3 percent expansion annually in the following two years.

Mining continues to drive the growth of countries like Mozambique but the report warned the fall in global commodity prices “might prompt some commodity extraction companies to delay or even cancel planned investments”.

Meanwhile, the World Bank has slashed its growth forecast for Angola from 5.3 percent to 4.5 percent in 2015. The estimates for 2016 and 2017 were also lower at 3.9 percent and 5.1 percent respectively.

“Low oil prices have considerably reduced growth in commodity exporting countries” like Angola and Nigeria, the report said, adding the Angolan Government has cut budgeted spending by 25 percent in 2015.

“With the lower Government spending, the non-oil economy in many of these countries is faltering,” the institution warned.

The World Bank has also cut the forecast for Brazil from a growth of 1 percent to a contraction of 1.3 percent in 2015. “Fragile confidence, increases in administered prices, and low commodity prices are expected to contribute to a recession in Brazil in 2015 with a modest recovery in 2016–17,” it added.

Among the other Portuguese-speaking economies, Cape Verde is expected to grow 3 percent, 3.4 percent and 3.5 percent annually respectively from 2015 to 2017; Guinea Bissau is likely to see 4.2 percent economic expansion in 2015 before slowing to 3.9 percent and 4 percent annually in the following two years; and East Timor would grow 6.8 percent this year before accelerating to 6.9 percent then 7 percent annual expansion in 2016 and 2017 stated the World Bank.

The report made no particular forecast regarding Portugal. As for China, the bank foresees that its economy is likely to increase 7.1 percent in 2015 and slow down to 6.9 percent growth in 2017.