Standard Bank Mozambique’s chief economist, Fáusio Mussá, said yesterday he believes Mozambique will come out of recession in the second quarter of this year, but has revised growth forecasts to lower projections, mainly due to the delay in Total’s gas project.“Mozambique is likely to come out of recession during the second quarter of 2021, as the country is experiencing a easing of restrictions related to covid-19,” he said in a comment to the PMI index bulletin published by the bank.The comments came after Standard Bank’s PMI (Purchasing Manager’s Index) rose for the first time in April to reach 51.3 points, above the neutral value of 50 since February 2020, signaling improvements in economic activity after the impact brought about by the pandemic.The Purchasing Managers’ Index published by Standard Bank results from the responses of purchasing directors from a panel of about 400 companies in the private sector.In relation to the recent attacks in Mozambique’s northern region, the report mentions a “negative sentiment” and a decline in FDI may be hampering economic recovery in the country for the months to come.“The base effects explain much of the expected growth, as the situation still points to moderate aggregate demand and negative sentiment, following a series of terrorist attacks that led to a humanitarian situation in the northern province of Cabo Delgado and further delays in the implementation of liquefied natural gas projects “.

Source: Further Africa