Civil Unrest and Cyclone Chido: Mozambique's Economic Growth Concerns

Mozambique's 2024 economic growth forecast may be downgraded from 4.3% due to post-election civil unrest and Cyclone Chido's impact. The disputed presidential election has led to protests affecting businesses and trade. The IMF expects growth to further slow in the fourth quarter, with modest recovery anticipated in 2025.

Mozambique's economic growth forecast for 2024 is expected to be revised downward from an earlier prediction of 4.3%, according to a senior IMF official. The adjustment follows civil unrest after the disputed presidential elections and the destructive impact of Cyclone Chido.

The elections, declared in favor of Frelimo candidate Daniel Chapo, have been contested by opposition parties, citing voting irregularities. This has caused protests and violence, disrupting business operations and shutting down key trade corridors, impacting the country's economic stability.

The IMF, monitoring the turbulent situation, anticipates further economic slowdown in the fourth quarter, worsened by Cyclone Chido's devastation, which has claimed at least 34 lives. Future negotiations on a three-year credit facility program will hinge on Mozambique's political stabilization.

(With inputs from agencies.)