Macroeconomic Forecast Mozambique

June 2008 | Macroeconomic Forecasts

The 19 donor agencies supporting and financing the state budget have promised US$774.3mn for 2009, up from US$624.8mn promised the previous year, despite Sweden and Switzerland reducing their aid in euro terms. Of this, direct budget support has increased by 16% to US$445.2mn, while the amount for sector programmes and funds has increased by 36% to US$329.1mn. While donor funds have increased by 24%, the Metical has appreciated by almost 10% against the dollar over the past year. While relatively stable since the start of the year, trading between MZN23.25-24.50/US$, we believe that the currency has room to appreciate further.

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