Mozambique: IMF Demands Austerity And Devaluation

There will be no IMF agreement or loans this year, said the IMF team which visited Mozambique 21-29 August. It simply said negotiations “will continue in the coming months”. And it set harsh conditions including “decisive action to restore macroeconomic stability”, which in IMF jargon means harsh austerity imposed quickly.

The IMF team said the “fiscal deficit”, that is expenditure in excess of income, was 2.4% of GDP in the first half of 2025. It said this is because “government expenditures…