Fiscal policies continue to expand in Mozambique, despite the fact that the Government has lost access to important external financing funds since 2016. Due to the application of irresponsible fiscal policies that consequently keep interest rates very high, the measures applied within the scope of the fiscal policy followed by the Government only benefit the groups closest to the government, defrauding the people's expectations.
The economy (gross domestic product, GDP) has been growing since 2016 at an average annual rate of around 3.8%, around 50% below the historical rates of 7% recorded in the previous decade. In the medium term (until 2020), economists1 do not foresee an improvement in growth. A major event – “watershed event”2 – that led to this drop in growth was the public discovery, in April 2016, of the famous hidden debt of US$ 2 billion.
