Mozambique continued its robust economic performance in 2012. The real gross domestic product (GDP) growth rate increased by 0.1% from 2011 to 2012. It was driven by larger than expected coal production, which contributed 0.8% to the GDP growth rate. The continuation of sizable foreign direct investment (FDI) inflows, increased coal production, credit expansion to the private sector and strong infrastructure investment are expected to drive growth to 8.5% and 8.0% in 2013 and 2014, respectively. An ambitious infrastructure programme, coupled with the expansion of social safety nets will pressure public finances. The continued negative trend in foreign aid flows will further stress the fiscal balance. The fiscal deficit is expected to worsen from 8.2% in 2012, to 9.2% and 9.5% in 2013 and 2014, respectively. The government plans to rely on private financing and public-private partnerships to finance infrastructure development; however, an enhanced institutional framework is needed to assure accountability and scrutiny for the plans to add economic value.