The Web edition of the IMF Survey is updated several times a week, and contains a wealth of articles about topical policy and economic issues in the news. Access the latest IMF research, read interviews, and listen to podcasts given by top IMF economists on important issues in the global economy. www.imf.org/external/pubs/ft/survey/so/home.aspx

Abstract

The Web edition of the IMF Survey is updated several times a week, and contains a wealth of articles about topical policy and economic issues in the news. Access the latest IMF research, read interviews, and listen to podcasts given by top IMF economists on important issues in the global economy. www.imf.org/external/pubs/ft/survey/so/home.aspx

During a visit to Mozambique, July 24–27, IMF Deputy Managing Director Takatoshi Kato lauded the work of Centro de Investigação em Saúde de Manhiça, a health research institute that, he said, is providing groundbreaking research on the region’s most critical diseases and helping improve health conditions in Mozambique. Kato told reporters that the IMF is very concerned about endemic diseases, such as malaria, HIV/AIDS, and tuberculosis, which have had a serious negative effect on African economies.

In meetings with President Armando Guebuza, Prime Minister Luisa Diogo, and other senior officials, Kato congratulated the country on its impressive progress in recent years, noting that sound macroeconomic policies had provided a solid underpinning for the economy’s growth at an annual average 8 percent—a rate “well above its regional peers”—and declining inflation rates. To sustain this performance, he added, Mozambique needs to strengthen its revenue performance and pursue second-generation reforms focused on strengthening institutions and removing obstacles to private sector activity, so that the country can make a lasting reduction in poverty and achieve the Millennium Development Goals.

On the second leg of his trip, Kato met with Zambia’s President Levy Mwanawasa, Finance Minister Ng’andu Magande, other senior officials, and members of the donor and business communities, parliament, and civil society. He praised the country’s “remarkable progress” in recent years and underscored the Fund’s “strong support for the overall thrust and direction of the policies being pursued”—particularly the emphasis given to addressing social needs and improving conditions for investment and growth.

Looking ahead, Kato stressed the need to keep public spending under control, particularly during the remainder of 2005 and 2006, to sustain macroeconomic stability. He also pointed to the need to advance reforms to create an enabling environment for private sector development, including by strengthening public expenditure management and financial accountability, financial sector reform, and governance.

The full text of Takatoshi Kato’s concluding remarks in Mozambique and Zambia are available on the IMF’s website (www.imf.org).

IMF Survey, Volume 34, Issue 15
Author: International Monetary Fund. External Relations Dept.