External Sector To Remain Weak In 2009

Mozambique's external accounts deteriorated in 2008 on the back of the combination of higher oil prices, and a deterioration of the global economy. This combination of shocks significantly increased the country's import bill, while at the same time reduced the demand for Mozambique's exports. That said, the negative shock to the current account was partially offset by a strengthening of the country's capital and financial accounts, which registered record inflows in 2008. Looking forward to 2009, we expect the current account to improve marginally, but to remain deep in the red.

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