Security crisis in Mozambique will worsen, for now
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Significance Dhlakama insists that any talks must be mediated by international bodies. It follows the deployment of security forces in the capital Maputo late last month, amid fears that the current unrest could escalate and spread. Impacts Refugee outflows to Malawi will exacerbate resource constraints there, particularly of food given the regional drought. Low prices for exports such as coal and weak agricultural output will cut GDP growth to around 5.8% in 2016 from 6.3% last year. If the United States -- the largest bilateral donor -- joins other donors in suspending aid it would deepen the fiscal crisis. Nyusi will likely use his visit to China to ask for new loans to cover fiscal gaps, probably underpinned by resources guarantees.
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