Mozambique economy increases 10 percent in the first half

21 August 2006

Maputo, Mozambique, 21 Aug – The prime minister of Mozambique Luísa Diogo revealed, in a meeting with journalists, that according to estimates, the Mozambican economy increased 10 percent in the in the first half of the year, showing a positive trend for all sectors.

Luísa Diogo also revealed that tax revenues increased 14 percent to 11 billion meticals (US$ 438.77 thousand), which was used for public spending.

Public spending came to a total of 18.7 billion meticals (US$ 745.91 thousand), which represents a deficit of around 7 billion meticals (US$ 279.22 thousand), the minister said, according to Mozambican newspaper Notícias.

Accumulated inflation came to 4.6 percent, according to the prime minister, who noted that the government is working on keeping this figure under seven percent by the end of the year.

Luísa Diogo also stressed the adverse conditions that the growth of the Mozambican economy has been subject to, such as the rise in oil prices and the constant threat of bird flu. The prime minister explained that the country’s stable political situation allowed for a favourable economic growth.

The government’s priority is agricultural development and the need to increase productivity in this sector, the prime minister said. (macauhub)