Mozambique Business Forecast Report Q3 2014 - New Market Research Report

Core Views:

* In the absence of new data, the trajectory of Mozambique's foreign exchange reserves suggests that the external accounts remain in a healthy state. We retain our view that Mozambique will continue to post large current account deficits until 2020 when natural gas production is set to begin in earnest. In the meantime, successive annual shortfalls will be covered by capital and financial account inflows.
* Benign inflation and a strong economic growth outlook lead us to believe that the Mozambican authorities will keep the policy rate at 8.25% for the remainder of 2014. The risks to this view are balanced. The authorities are likely hike rates if the metical weakens significantly against the South African rand or cut rates if economic growth comes in lower than expected.

Full Report Details at
- http://www.fastmr.com/prod/829887_mozambique_business_forecast_report_q3_2014.aspx?afid=303

Major Forecast Changes:

* We have increased our 2014 headline growth forecast to 7.2% from 6.9% as natural resource sectors appear to be picking up some of the slack created by a relatively subdued consumer sector. We continue to forecast that growth will increase towards double digits in the years leading up to the onset of gas production in 2020.

Key Risks To Outlook:

* Mozambique is vulnerable to adverse weather specifically too much or too little rain and this will continue to pose a risk to the agriculturally-based economy.
* The security situation poses a major threat to economic growth, the external accounts and government revenue as a significant deterioration would likely lead to reduced foreign investment inflows.
* A failure to address deficient infrastructure is the most pressing risk to our upbeat view on the Mozambican economy. Transport infrastructure in particular is currently inadequate to get Mozambique's natural riches to international markets. Failure to address this would negatively impact our expectation that exports will be a major driver of growth over the coming years.

The Mozambique Business Forecast Report helps businesses with market assessment, strategic planning and decision making to promote growth and profitability in The Mozambique and is an essential tool for CEOs, Chairmen, Finance Directors/CFOs, Managing Directors, Marketing/Sales Directors with commercial interests in this emerging market..

An influential new analysis of The Mozambique's economic, political and financial prospects through end-2017, just published by award-winning forecasters, Business Monitor International (BMI).

Key Uses

* Forecast the pace and stability of The Mozambique's economic and industry growth through end-2017.
* Identify and evaluate adverse political and economic trends, to facilitate risk mitigation.
* Assess the critical shortcomings of the business environment that pose hidden barriers and costs to corporate profitability.

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

You may also be interested in these related reports:

- Sri Lanka Business Forecast Report Q3 2014
- Russia Business Forecast Report Q3 2014
- Latvia Business Forecast Report Q3 2014
- Trinidad & Tobago Business Forecast Report Q3 2014
- Germany Business Forecast Report Q3 2014