Mozambican economy to expand 7.9 pct in 2008, government says

14 December 2006

Maputo, Mozambique, 14 Dec – Mozambique’s Gross Domestic Product (GDP) this year is expected to grow by 7.9 percent, the minister for planning and development, Aiuba Cuereneia said Wednesday during a debate in the country’s parliament.

From January to September this year Mozambique’s exports grew 39 percent year on year, totaling US$1.746 billion.

Aluminum from the country’s largest factory, Mozal, natural gas produced by South Africa’s Sasol and electricity from the Cahora Bassa hydroelectric dam accounted for 70 percent of Mozambique’s total exports.

Remaining exports included tobacco, shrimp, cotton, sugar and cashews.

For this year the government set a target of 7.5 percent for inflation, which will be difficult to achieve as retailers have increased prices for the holiday season.

In terms of the exchange rate, the minister said that the metical had fallen 5.8 percent against the US dollar in the first 11 months of the year, a period in which its value rose 7.3 percent against South Africa’s rand. (macauhub)