Mozambican economy grows 8.8 pct in first half of 2007

18 September 2007

Maputo, Mozambique, 18 Sept – The growth of Mozambique’s economy slowed in the first half of the year as compared with the same period of 2006, the country’s Planning and Development Minister said Monday in Maputo.

According to figures made public by Minister Aiuba Cuereneia in a press conference, the Mozambican economy grew by 8.8 percent in the first half, whilst in the year-ago period it grew by 10 percent.

The economy would have grown at a higher rate, Cuereneia said, if it were not for some natural disasters, namely floods in January-February in the Zambezi valley and cyclone Flavio, which left a trail of destruction in the tourist areas of Inhambane province.

The sectors to post greatest growth, according to the minister were energy and water (24.5 percent), restaurants and hotels (17.1 percent) transport and communication (16.1 percent), retail (14 percent) and civil construction (10.5 percent).

Agriculture saw growth of 8.8 percent and cattle production had growth of 7.7 percent, but fishing fell 8.2 percent.

The rate of inflation in the first half was 3.7 percent with the government forecast for the year totalling 6 percent.

From January to July 85 new investments were approved to the value of US$1.83 billion, but this figure includes investments made by Brazilian mining company Vale do Rio Doce in Moatize, which accounts for 83 percent of the total. (macauhub)