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Mozambique economy to grow 3.6 pct in 2016, EIU forecasts

The Economist Intelligence Unit (EIU) expects the Mozambican economy to grow by 3.6 percent this year and to grow even faster in the following few years, Macauhub reports.

The website quotes the British research and analysis agency as saying the rate of economic growth it expects this year is about half the average in the past decade because public spending will be lower, exports will be weak and agricultural production will diminish.

The EIU is quoted as forecasting average annual growth of 5.1 percent from 2017 to 2020 as agricultural output improves, coal production rises and investor confidence recovers.

But high inflation and currency volatility could curb investment in Mozambique, the report quotes the EIU as saying.