The International Monetary Fund says Mozambique’s economy “remains robust”. Growth is forecast at 7.5 percent for 2014, while inflation is expected to be low.

The comments were included in the IMF’s latest review of Mozambique’s economic performance, completed on Monday.

“The main short-term challenge is to maintain the growth momentum while preserving fiscal and debt sustainability,” the IMF stated in a press release.

It added: “Fiscal consolidation needs to be initiated in the 2015 budget to restore prudent fiscal management. While low import prices have dampened inflation, the Bank of Mozambique should stay vigilant and adhere to its medium-term inflation target.”

According to the IMF, key structural reform priorities include, among others, improving VAT and overall tax administration, and enhancing the business environment and financial sector development.

Despite the heightened risks from an uncertain global outlook, “growth is expected to remain strong and be broad-based in the medium term, boosted by the natural resource boom and infrastructure investment,” the IMF said.