Economics
Mozambique Stops Spending Until After Budget Review in July
- Salaries, pensions will still be paid, Finance Ministry says
- Nation holds debt that’s equivalent to 86% of its GDP
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Mozambique’s government has frozen spending aside from salaries and pensions until it has carried out a budget review, which it will present on July 10 when it will announce austerity measures, the Finance Ministry said.
The International Monetary Fund warned this month that Mozambique, whose debt is equal to 86 percent of national output, requires substantial fiscal and monetary tightening measures and exchange rate flexibility to reduce pressure on inflation and its balance of payments.