Fitch projects debt will fall to 94% of GDP in 2017 from 114% in 2016, capturing a jump in domestic debt offset by a much larger fall in external debt due to the recovery of the metical
Decisive monetary policy measures and strong commodity export performances have helped to stabilize the Metical
and bring inflation down in 2017.
The Angolan kwanza and Mozambican metical
were both among the 10 biggest depreciating currencies in the world in 2016, losing 18.
Finally, the higher purchasing power of the metical
makes the wages more attractive to these migrants, who return to Malawi and use them there.
However, due to sharp depreciation in metical
, Mozambique's economic size is expected to decline by over 50 per cent in US dollar terms from $15 billion in 2015 to $7.
The debt crisis and aid suspension has hit Mozambique hard, with its currency, the metical
, losing nearly 40 percent against the dollar since January and economic growth slowing to below 4 percent.
The ongoing government debt scandal and ensuing deterioration in investor sentiment will see inflation remain high over 2016, as the metical
continues to depreciate.
Although import growth will decelerate in Mozambique in 2016, further depreciation of the metical
will see the current account deficit deepen for the second successive year.
Strategic and Metical
intelligence historically has been critical to any battle, In the future, the intelligence community will play an even more vital role.
The authorities are likely hike rates if the metical
weakens significantly against the South African rand or cut rates if economic growth comes in lower than expected.
The local currency, the metical
, has been strengthening in the foreign exchange markets and still appears to have some upside potential, given the very large amounts of investment and other capital headed for the country.
This remarkable disinflation reflects the determination of the authorities in tightening monetary and fiscal policies, favorable developments of international prices, a good harvest, and a stronger metical
[local currency denoted as MZN].